4. The various pressure groups which make up the Liberal lobby have as yet been unable to organise themselves into a viable unified

grouping. However Martin Lee, in reaction to the news of the

formation of the New Hong Kong Alliance, reiterated his wish to form

his own party to field candidates in the 1991 elections. At the

same time the three core Liberal groups, Meeting Point, the

Association for Democracy and People's Livelihood and the Hong Kong

Affairs Society have set up a working group to look for common

ground on which to base a unified organisation. Whether or not a

united organisation will eventually emerge, Liberal Groups will

certainly be putting forward candidates for LegCo seats in 1991.

MODERATES

5.

The many moderate political groups (including the pro-Chinese Federation of Trade Unions and the Group of 38 Educationalists) have recently formed a joint conference on the Basic Law Consultation, and some see this as a prelude to a new political alliance.

6. The formation of these new political groupings is still at an embryonic stage with membership and alliances fluid. The various groups are now working out aims and identities for themselves: a process complicated bvy the lack of a valid model or precedent.

7. The emergence of full blown party politics in Hong Kong would be unpalatable to the Chinese. Equally, the business community would not welcome the challenge to their influence which a confrontational political party system might produce. Only the liberals have talked openly in terms of a 'party': understandable since they stand to gain most from the widening of the franchise and the possibility of capturing council seats from the traditional interest groups.

SIPAAR(2)

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