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4423

MDLIA 7941

ABODE IN THE U K IN THE SAR. OTHERS SAID THAT THE SCHEME WOULD AFFECT THE FUTURE STABILITY AND PROSPERITY OF THE TERRITORY BECAUSE THE RIGHT WOULD CAUSE TALENTED PEOPLE TO LEAVE.

5. CHINA EXPRESSED 'GREAT SURPRISE' OVER BRITAIN'S DECISION TO GRANT 50,000 HOUSEHOLDS IN HONG KONG FULL BRITISH CITIZENSHIP AND CALLED THE DECISION 'A GROSS VIOLATION OF ITS OWN SOLEMN COMMITMENTS', THE MEDIA (31.12) REPORTED. A FOREIGN MINISTRY SPOKESMAN SAID THAT THE DECISION OF THE UK GOVERNMENT TO GRANT THE RIGHT OF ABODE TO SOME HONG KONG PEOPLE WOULD INEVITABLY CREATE CONTRADICTIONS LEADING TO DIVISIONS AND CONFRONTATIONS AMONG HONG KONG RESIDENTS. THE CHINESE GOVERNMENT ASKED THE BRITISH TO TAKE ACCOUNT OF THE OVERALL INTERESTS OF HONG KONG AND CHANGE ITS ERRONEOUS MEASURES. OTHERWISE, IT WOULD HAVE TO BEAR A SERIES OF CONSEQUENCES ARISING FROM THIS. HE SAID THAT THE CHINESE RESERVED THE RIGHT TO TAKE CORRESPONDING MEASURES. REFERRING TO THESE REMARKS, DEPUTY PRIME MINISTER SIR GEOFFREY HOWE, FRANCIS MAUDE AND AN FCO SPOKESMAN IN HONG KONG CHRISTOPHER OSBORNE SAID THAT THE DECISION WOULD IN NO WAY BREACH THE JD.

6. DIRECTOR OF ADMINISTRATION SAID THAT THE BRITISH NATIONALITY PACKAGE HAD NOT RUN COUNTER TO THE JD, THE MEDIA (31.12). SENIOR LEGCO MEMBER ALLEN LEE AND LEGCO MEMBERS SELINA CHOW AND MARTIN LEE SAID THAT THEY WERE SURPRISED AT CHINA'S ACCUSATIONS ON THE NATIONALITY ARRANGEMENT. BUT BLCC AND CPPCC MEMBERS XU SIMIN SAID THAT THE NATIONALITY PACKAGE HAD INFRINGED ON THE JD.

REACTION TO BLDC DECISIONS

7. A DECISION OF THE BLDC SPECIAL GROUP MEETINGS IN GUANGZHOU THAT THE NUMBER OF DIRECTLY ELECTED SEATS FOR THE FIRST SAR LEGISLATURE WAS SET AT 18 AND THAT THE POLITICAL SYSTEM WOULD REMAIN UNCHANGED FOR THE FIRST TEN YEARS AFTER 1997, DREW CRITICISM FROM VARIOUS SECTORS OF THE COMMUNITY. OMELCO MEMBERS WERE DISAPPOINTED BY THE DECISIONS AND SAID THAT THEY WERE NOT IN LINE WITH THE WISHES OF HONG KONG PEOPLE. DISAPPOINTMENT OVER THE DECISIONS WAS ALSO EXPRESSED BY A BASIC LAW HONG KONG DRAFTER, DR RAYSON HUANG. A NUMBER OF LOCAL POLITICAL GROUPS ALSO CRITICISED THE DECISIONS.

POLITICAL REFORM

8. THE FOREIGN SECRETARY WAS EXAMINING THE PACE OF DEMOCRATIC DEVELOPMENT FOR HONG KONG AND IT WAS EXPECTED THAT THE ARRANGEMENTS FOR DIRECT ELECTION WOULD BE ANNOUNCED IN JANUARY THIS YEAR, SOME PAPERS (28.12) REPORTED, QUOTING BRITISH SOURCES. IT WAS UNDERSTOOD THAT MR HURD WOULD ALLOW A HIGHER PROPORTION OF DIRECTLY ELECTED

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