H

Ο

F

LORDS

FROM

THE LEADER OF THE OPPOSITION

..

House of Lords Westminster

5.

Atie 64

Articles 105 and 107 need further careful discussion.

Furthermore,

The requirements to "maintain a basic balance between total

budgetary revenues and expenditure" and "to practise a low tur

dr

policy" seem to me to be appropriate in a constitutiona

docnout and could as we know only too well restrict the fireal

policies of a future administration.

Perhaps the Noble Lord

will give us his reaction to this provision?

I also read Annexes 1 and 2 with great interest."hese

deal with selecting the Chief Executive and constituting the

Legislative Council of th SAR. I am sure that there will b

subject of further discussion and it may be sugrented } ;+

i+

ther do pot muke adequate provision for direct elections.

Furthermore, Annex 3 needs careful thought as its

proposals may not provide for the continuity of government

through the transitional period. It seems to weigh for too

heavily on the si! of the Chinese Government in anointing

the executive.

The House will further recall thu'

the Joint Declaration provides that the executive shull be

"accountable" to the legislature. The Basic Law makes no

reference to this important constitutional requirement and no

doubt it will be taken up in the discussions which are proc eding,

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