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MDLIAN 0913

CLEAR THEIR READINESS TO LISTEN AND HAD TAKEN CAREFUL NOTE OF WHAT HONG KONG PEOPLE HAD SAID. OPINION IN HONG KONG WAS DIVIDED ON THE QUESTION OF WHETHER ONLY CHINESE LAWS CONCERNING FOREIGN AFFAIRS AND DEFENCE SHOULD APPLY IN HONG KONG OR WHETHER, IN ADDITION, CERTAIN OTHER PARTS OF CHINESE LAW, FOR EXAMPLE, CHINESE NATIONALITY LAW, SHOULD ALSO APPLY. THE SCHOOL OF THOUGH FAVOURING THE SECOND OPTION APPEARED TO BE GAINING GROUND. MEMBERS BELIEVED THAT THE CHINESE WOULD BE PREPARED TO GIVE WAY TO CONCERNS ABOUT ARTICLE 18 OF THE DRAFT BASIC LAW, BUT THAT THEY WOULD NOT BE PREPARED TO CONCEDE ON THE RIGHT OF INTERPRETATION OF THE BASIC LAW PROVIDED IN ARTICLE 169. MORE TIME WAS NEEDED TO EXPLAIN OUR CONCERN ON THIS

POINT TO THE CHINESE.

10. ARTICLE 22 WAS ANOTHER MAJOR CONCERN. THERE WAS GROWING SUPPORT FOR THE PROPOSAL THAT THIS SHOULD BE DELETED FROM THE BASIC LAW, AND THAT APPROPRIATE PROVISIONS SHOULD INSTEAD BE INCORPORATED INTO HONG KONG LAW.

11. MEMBERS SAID THAT OPINION WAS STILL SHARPLY DIVIDED ON THE

POLITICAL STRUCTURE. ALTHOUGH THE CHINESE HAD SUGGESTED THAT THE

TWO OPPOSING CAMPS SHOULD TALK TO EACH OTHER WITH A VIEW TO ARRIVING AT A CONSENSUS, MEMBERS WERE NOT SURPRISED THAT NO SUCH CONSENSUS HAD BEEN ACHIEVED TO DATE.

12. A FURTHER DIFFICULTY WAS IN ACCOMMODATING SECTORAL INTERESTS, WHICH VARIOUS GROUPS WERE PUSHING STRONGLY. THE CHINESE HAD NOT YET

FOUND A SOLUTION TO THIS PROBLEM.

13. GENERALLY, MEMBERS THOUGHT THAT THE DRAFT PROVIDED INSUFFICIENT FLEXIBILITY FOR HONG KONG BUT THAT THERE WERE STILL ROOM FOR MANOEUVRE TO SECURE AMENDMENTS.

14. A MEMBER SUGGESTED THAT HMG COULD GAIN POLITICAL MILEAGE IN

HONG KONG BY MAKING IT KNOWN PUBLICLY WHICH POINTS ON THE BASIC LAW

THEY HAD TAKEN UP WITH THE CHINESE. LORD GLENARTHUR SAID THAT IT

WAS ALREADY WIDELY KNOWN IN HONG KONG WHICH POINTS WERE CAUSING

CONCERN. HE DOUBTED THAT ANYTHING MORE COULD BE GAINED BY

PUBLICIZING THE POINTS THAT HMG HAD TAKEN UP. HE WAS SURE THE CHINESE HAD ALREADY HOISTED THESE POINTS ON BOARD. THERE WERE

CERTAIN SENSITIVITIES TO OBSERVE ON THE CHINESE SIDE. HMG HAD AN OBLIGATION TO ENSURE THAT HONG KONG'S CONCERNS WERE REFLECTED:

THERE WAS ALSO A NEED TO ENSURE THAT THE DETAILS OF DISCUSSION BETWEEN HMG AND THE CPG REMAINED CONFIDENTIAL.

BUT

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