The second draft provides that members of the last Hong Kong Legislative Council will become members of the first SAR legislature, subject to certain conditions (eg upholding the Basic

Law).

ix) the first draft did not make clear what the status of

the English language in the Hong Kong SAR would be.

The second draft makes express provision that English will also be

an official language in the Hong Kong SAR.

x) the first draft did not make it clear whether there

would be an authentic English text of the Basic Law.

Chinese officials have publicly indicated that there will indeed be

an authentic English text.

Remaining areas of difficulty to be resolved

7.

Although the second draft is a considerable improvement over the first, there remain a number of controversial points which will need to be carefully considered in the second consultation period.

8.

In particular, there is a continuing debate in Hong Kong about the future political structure. The second draft stipulates that the ultimate objective is universal suffrage, ie a system whereby the Chief Executive and the legislature are fully directly elected. Initially, however, the legislature will be only partially constituted through direct elections; and the first, second and third Chief Executives will be elected by an Election Committee and not through universal suffrage. Moreover, the move to full universal suffrage will be subject to the outcome of referenda. approval of the Chief Executive, a majority of the legislature, and the Standing Committee of the NPC is required before these referenda

can be held.

The

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