SECURITY CLASSIFICATION

DSR 11C (Revised 5/87)

the power of interpretation of the Basic Law) where the

drafting can be further improved. We will want to peruse

these points in the light of reactions in Hong Kong.

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PRIVACY MARKING

In Confidence

11.

There are particular difficulties over the section

on the future political system. The Joint Declaration

says only that the legislature will be "composed of local

inhabitants" and "constituted by elections"; and that the

Chief Executive will be "selected by election or through

consultations held locally". There have been differences

of view amongst the Hong Kong members of the Basic Law

Drafting Committee, reflecting a similar divergence of

opinion in Hong Kong. Some members of the BLDC, led by

Mr Martin Lee, are pressing for the fastest possible

progress towards a directly elected Chief Executive and a

fully directly elected legislature. Others, including

such business figures as Sir Y K Pao, advocate a

considerably more conservative approach, involving

minimal evolution from the status quo. The draft as it

now stands embodies a position which leans to the more

conservative of the two views. It sets a timetable for

change after 1997 and proposes that referenda should be

held in 2011 and 2012 to determine whether at that point

Hong Kong should have a directly elected Chief Executive

and a fully directly elected legislature. It also

proposes that the move to universal suffrage would

require the consent of the Chief Executive, two thirds of

the Legislature and the Standing Committee of the

National People's Congress. We shall need to press for

modifications which can command the confidence of the

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