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7.
Option (B) A post which would in effect (although not in
name) be that of Chief Executive (Designate) would be created before 1997. This would be done in two stages. Firstly the
post of Deputy Governor would be created within the Hong Kong
Government: subsequently, nearer 1997, it would be filled by
the person who would hold office as Chief Executive
(Designate) before and after 1997. The powers which will be
exercised by the Chief Executive after 1997 would be gradually delegated or devolved to the occupant of the post
from the Governor, starting at a point in time before 1997.
The Governor would retain ultimate authority and specific
responsibility, under the direction of HMG, for security, defence and foreign affairs.
be
Option (A) has the advantage that HMG would be seen to maintaining direct and unequivocal responsibility for the governing of Hong Kong until 1997. This would be the clearest way of
upholding the commitment to this effect in the Joint Declaration
(although it can also be effectively upheld under option (B)).
8. The disadvantage of option (A) is that the handover in 1997
would be abrupt, and militate against a smooth transition. The new Chief Executive (even if chosen beforehand) would have no experience
of high authority and responsibility when he assumed all his
functions on 1 July 1997.
9. It is only realistic to recognise that as we move closer to 1997
the people of Hong Kong, the legislature, and other representative institutions will be in increasingly close contact with the Chinese. They will increasingly look to the Chinese for approval, if not instructions, in their approach to public business. At present the Chinese appear to envisage that the Chief Executive would be chosen before 1997 but would assume a role in the administration only on 1
July 1997. The existence of a Chief Executive designated by China but not formally integrated into the Government structure would be an awkward and potentially dangerous alternative focus of political
power. This could cause political instability, and accentuate in
the years running up to 1997 an erosion of the Governor's authority which is likely to prove inevitable. If institutions and the
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