Problem

CONFIDENTIAL

Basic Law: outstanding issues

Proposed solution*

!

Channel to put across suggestion

(A) Political System

(a) Longer-term political

structure Views remain

divided at present on the pace and starting point of democratic development. Important that consensus would emerge and a broadly acceptable model be worked

out.

(Art. 45 and 67, Annexes I

and II)

The proposals in the second draft could be made more acceptable by the following modifications:

(a) The referenda requirement on (c) and

(d) to be removed;

(b) Directly-elected seats in the first SAR

legislature to be increased to

one-third.

(c) CE to be elected by universal suffrage

as from third term (2007);

*Note: Chinese texts of the proposed redrafts are at Annex.

-

Governor's possible visit to Peking

Zheng Weirong

Maria Tam

- Daniel Tse

CONFIDENTIAL

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