C c)

D d)

SECRET

Note 2: The Executive

This considers the composition, powers and functions of a future

"Executive Council", constituted on very much the same lines as

the present ExCo;

Note 3: The Legislature

This begins by considering the composition of the future legislature. It suggests that there might be a component

elected by functional constituencies, a component elected

(directly or indirectly) by geographical constituencies and a

component elected by the "grand electoral college". The latter

device (as we have indicated in earlier papers for the Chinese)

could accommodate both the present appointed members and also

officials. The remainder of the paper covers terms of office,

the presidency of the legislature, and its powers and

functions.

11. The only major point on which we still have some differences

with ExCo concerns the terms of office of the Chief Executive and

the Legislature. ExCo favour a fixed term of office for the

legislature and a power of dissolution, in the hands of the Chief

Executive. These are incompatible concepts. We have suggested that

the legislature should have only a maximum term; that the Chief

Executive should retain the power of dissolution; but that as a

balance the Chief Executive should be required to seek re-election

if the legislature were dissolved. In the limited time available we

have not been able to resolve the difference, which is reflected in

the alternatives set out in paras 23 and 24 of Paper I. It would be

desirable to simplify this passage, if we can, before the paper goes

to the Chinese: we have urged ExCo to think this point through more

clearly.

12. I apologise for the speed with which we are forced to conduct

this exercise. In the circumstances Lord Glenarthur has agreed that

the papers should be submitted directly to the Secretary of State,

with a side copy for himself.

Conten

CO Hum

SECRET

/ I am

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