49.
HK MEMBER SIK KWOK-KWONG SUGGESTED THAT THE BL SHOULD ENSURE THAT THE GOVERNMENT AND CHARITABLE ORGANISATIONS WOULD CONTINUE TO
SUBSIDISE SOCIAL SERVICES AFTER 1997.
(Q) RIGHT OF ABODE IN THE HK SAR
50.
IN AN EXCLUSIVE INTERVIEW WITH HONG KONG STANDARD, LU PING SAID THAT THE RECENTLY ANNOUNCED RIGHT OF ABODE LEGISLATION WAS NOT FULLY IN LINE WITH THE JD BECAUSE IT DID NOT INCLUDE ELIGIBLE EXPATRIATES WHO, UNDER THE NEW LEGISLATION, WOULD ONLY HAVE THE RIGHT TO LAND. HE SAID THAT THE LAW WOULD BE AMENDED CLOSER TO
1997 SO AS TO REDEFINE THE RIGHT OF ABODE FOR EXPATRIATES. LU SAID THAT EXPATRIATES WHO HAD RESIDED IN THE TERRITORY FOR MORE THAN SEVEN YEARS AND HAD TAKEN HK AS THEIR PLACE OG PERMANENT RESIDENCE WOULD BE GRANTED RIGHT OF ABODE IN THE HK SAR AFTER 1997 WITHOUT
HAVING TO RELINQUISH THEIR FOREIGN PASSPORTS.
(R) THE SAR'S ECONOMIC SYSTEM
51. ON THE EVE OF BLDC PLENUM IV, WONG PO-YAN, HK CO-CONVENOR OF THE BLDC SPECIAL GROUP ON ECONOMIC SYSTEM, SAID THAT HE WOULD DISCUSS WITH YONG LONGGU, THE GROUP'S CHINESE CO-CONVENOR, THE PROCEDURES FOR CONSULTING HONG KONG'S FINANCIAL AND BANKING SECTORS ON THE SAR'S FINANCIAL SYSTEM. HE SAID THAT THE BLDC SPECIAL GROUP ON ECONOMIC SYSTEM COULD ASK BLCC MEMBERS TO SUBMIT THEIR VIEWS ON SPECIFIC TOPICS, OR ALTERNATIVELY BLCC MEMBERS COULD TAKE THE INITIATIVE TO EXPRESS THEIR VIEWS ON THOSE TOPICS WITH WHICH THEY WERE FAMILIAR. WONG ADDED THAT CONSULTATION IN THE MAINLAND COULD BE DONE THROUGH CHINESE MEMBER LI YUMIN, WHO IS THE DEPUTY HEAD
OF THE BANK OF CHINA.
52. WONG PO-YAN SAID THAT UNLIKE THE POLITICAL SYSTEM, THE FINANCIAL SYSTEM DID NOT HAVE A CONVERGENCE PROBLEM, WHICH NECESSITATED EARLY TRANSITIONAL ARRANGEMENTS. HENCE CERTAIN SENSITIVE FINANCIAL ISSUES, E.G. WHETHER THERE SHOULD BE A CENTRAL BANK, WHETHER THERE SHOULD CONTINUE TO BE TWO NOTE-ISSUING BANKS, ETC. COULD BEST BE LEFT TO THE SARG TO HANDLE. WONG SAID THAT THE CHINESE WERE KEEN TO MAINTAIN ECONOMIC AND FINANCIAL STABILITY IN HONG KONG AND TO RETAIN THE STATUS QUO AS FAR AS POSSIBLE. THIS WOULD BE THE CENTRAL IDEA OF CHAPTER V (ECONOMIC SYSTEM OF THE HK SAR) OF THE BL, AND THE DRAFT ARTICLES IN THIS CHAPTER WERE LIKELY TO BE RATHER SIMPLE. ADDITION, WONG PO-YAN QUERIED THE NEED TO FORMULATE A SET OF FINANCIAL POLICIES SINCE THE EXISTING SYSTEM WAS IN SOUND OPERATION.
(S) POLITICAL SYSTEM
IN
53. ON DEPARTURE FOR PEKING, LOUIS CHA SAID THAT THE CHINESE VIEW
HAD ALWAYS BEEN THAT HK'S FUTURE POLITICAL SYSTEM SHOULD BE DETER-
MINED BY THE BL. THEY HAD NOT SO FAR EXPRESSED ANY STAND ON THE
QUESTION OF DIRECT ELECTIONS IN 1997. CHA PERSONALLY THOUGHT THAT
THE CHINESE SIDE'S DISLIKE OF DIRECT ELECTIONS IN 1988 WAS LARGELY
DUE TO THE APPREHENSION THAT THIS MIGHT NOT CONVERGE WITH TE
PROVISIONS IN THE BL.
•
RESTRICTED
/(7)