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41.

DSR 11C (Revised 5/87)

Much of the first draft of the Basic Law was in

satisfactory form. Some parts of it quoted the Joint

Declaration verbatim. But it contained a number of

deficiencies which were identified during the

consultation period. Although it is too soon to assess

public reaction in Hong Kong, it is clear that the second

draft contains substantial improvements reflecting

concerns expressed during the first consultation period

(Annex III to this Memorandum contains a table,

illustrating the areas of the draft Basic Law where

substantial improvements have already been made).

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42. The British Government will consider carefully in

the light of reactions in Hong Kong in the course of the

second round of public consultation, what further

Reviews should be conveyed to the Chinese authorities.

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section which has aroused controversy in Hong Kong is

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that on the future constitutional structure. This is an

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area of particular importance for confidence in Hong

Kong.

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Vietnamese Boat People

43. In accordance with the outcome of the United

Nations Conference on Indo-Chinese refugees held in

Geneva in 1979, Hong Kong and some countries in the

region have provided temporary shelter to all boat people

arriving from Vietnam, on the understanding that they

would eventually be resettled by the international

community.

Since 1975 some 133,000 boat people have

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