(shows how seriously
take it!) they
12.
13.
14.
US/HK $ link
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The Governor said that the HKG did not intend to change the link to the U.S. $. It was important for confidence. Once we changed there would always be pressure for further changes. We had had some pressure for change, but not very much, from the U.S. Treasury. were trying to persuade the U.S. not to penalise Hong Kong which was an open market economy, when their real targets were South Korea and Taiwan. Mr. Melancia said that Macau would only change if Hong Kong did.
Term of office
The Governor asked how long Mr. Melancia expected to be in office. Mr. Melancia said that his term was linked to that of the President of Portugal (i.e. another 3 years). He would not wish to serve for longer.
Macau legislature
Mr.
The Governor asked how the Macau legislature would evolve over the period before 1997. Melancia said that the Macau Government would have to study the problem. There had been suggestions of changes last year but the Chinese had opposed them and they would not be pursued. They clearly wished to maintain the existing
We
system. At present there were 6 directly elected, 6 indirectly elected and 5 appointed members: 9 were Chinese and 8 Portugese. He expected the 1988 elections to reduce the number of Portugese, although he would not I know the likely outcome of the elections until
he had talked further to the Chinese. This would change his relationship with the Legislature.
Continuity of legislation
14. Mr. Melancia asked what measures Hong Kong was taking to ensure the continuity of legislation through 1997. The Governor explained the need to localise UK legislation that applied to Hong Kong and to translate laws into Chinese. He also outlined the action being taken to ensure that Hong Kong's international rights and obligations were maintained.
Distribution:
CS
FS
PA
DCS
AG S(GD) SASI
Mr. Hum, HKD, FCO Miss Bailes, Peking
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