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015742 MDADAN 4906.

6. NATIONALITY REQUIREMENTS FOR LEGCO MEMBERS. LI SAID THE CHINESE WERE GIVING CONSIDERATION TO THREE SEPARATE PROPOSALS RAISED BY HONG KONG PEOPLE:

(I) DIRECTLY ELECTED LEGCO MEMBERS SHOULD BE CHINESE CITIZENS, BECAUSE THE RIGHT TO ELECT AND BE ELECTED IS A CITIZEN'S RIGHT:

(II) THE RATIO BETWEEN CHINESE CITIZENS AND NON-CHINESE CITIZENS IN

LEGCO SHOULD BE STIPULATED, AND THE LATTER SHOULD NOT TAKE UP TOO

HIGH A PROPORTION:

(III) ALL LEGCO MEMBERS SHOULD BE CHINESE CITIZENS.

7. LI SAID THESE SUGGESTIONS WOULD BE TAKEN INTO ACCOUNT IN

ADDRESSING CONCERNS OVER THE INTERNATIONALISATION OF HONG KONG.

8.

POLITICAL STRUCTURE. LI SAID CHINA WAS WORRIED THAT A PREVIOUS AGREEMENT WITH BRITAIN ON THE CONVERGENCE OF POLITICAL SYSTEMS BEFORE AND AFTER 1997 COULD BE UPSET BY A RUSH TOWARDS DEMOCRATISATION. HE SAID THAT PROBLEMS WOULD ARISE OVER CONVERGENCE WITH THE BL IF THE DIRECTLY ELECTED ELEMENT IN LEGCO INCREASED RAPIDLY IN 1991, AND HE POINTED OUT THAT ANNEX II OF THE DRAFT BL CURRENTLY PROVIDED FOR ONLY 15 DIRECTLY ELECTED SEATS IN 1997.

9. THE NATIONALITY PACKAGE. BOTH LI HOU AND LU PING WERE QUESTIONED

ON THE BRITISH NATIONALITY PACKAGE. LI INDICATED CHINA WAS CONCERNED GIVEN THAT HONG KONG WOULD BE PART OF CHINESE SOIL IN FUTURE, AND UK'S NATIONALITY PACKAGE COULD CAUSE PROBLEMS OF ALLEGIANCE IF A

LARGE NUMBER OF HONG KONG PEOPLE BECAME FOREIGN NATIONALS. HE ADDED THAT HE DID NOT WISH TO COMMENT FURTHER AT THIS STAGE, BUT THE CHINESE WOULD PAY CLOSE ATTENTION TO THE MATTER.

10. EARLIER PRESS REPORTS ON 18 NOVEMBER QUOTED LU PING AS SAYING

THAT HMG SHOULD PAY ATTENTION TO THE MEMORANDA ATTACHED TO THE JD IN FORMULATING A NATIONALITY PACKAGE. NOTING THAT THE BRITISH SIDE HAD NOT INFORMED THE CHINESE OF THEIR PROPOSAL, LU SAID THAT THE CHINESE POSITION ON THE RIGHT OF ABODE QUESTION WAS THAT WHATEVER DECISION WAS REACHED BY THE UK MUST BE CONSISTENT WITH THE JD.

11. MY REMARKS IN WASHINGTON ON ADMINISTRATION BEING IN THE HANDS OF HONG KONG PEOPLE. IN ANSWER TO A (TENDENTIOUS) QUESTION ABOUT HIS

VIEWS ON WHAT I HAD SAID IN WASHINGTON ABOUT HANDING OVER ADMINISTRATION TO HONG KONG PEOPLE, NOT PEKING OFFICIALS (MY TELNO 3571), LI SAID THAT SOVEREIGNTY AND THE RIGHT OF ADMINISTERING HONG

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