CONFIDENTIAL

CONFIDENTIAL

FM HONG KONG

TO IMMEDIATE FCO

HKC012/3

12 MAR 1990

N (PAILER

TELNO 633

OF 191125Z FEBRUARY 20

PA

BÀY

PECISTRY

Action Taken

INFO PRIORITY PEKING, UKREP JLG HONG KONG

ST

(19

156714 MDHIAN 7612

PERSONAL FOR PAUL, HKD

AMENDMENTS TO BASIC LAW: CHINESE RESPONSE TO BRITISH PROPOSALS

SUMMARY

1. A CHECK OF THE FINAL DRAFT OF THE BASIC LAW AGAINST SUGGESTIONS WE HAVE MADE FOR AMENDMENT, EITHER TO SECURE IMPROVEMENTS OR AVOID POSSIBLE CONFLICT WITH THE JOINT DECLARATION, SHOWS A SCORE OF 2 AND 3 HALVES OUT OF 22. A MUCH POORER RECORD THAN FOR THE FIRST DRAFT WHEN WE SECURED SUBSTANTIAL AMENDMENTS.

DETAIL

2. WE HAVE CHECKED THE AMENDMENTS AGREED AT BLDC IX AGAINST THE POINTS MADE IN THE SECRETARY OF STATE'S LETTER OF 6 DECEMBER 1989 TO QIAN AND FIFOOT'S LETTER OF 9 NOVEMBER 1989 TO SHAO. THE POSITION ON PROVISIONS OTHER THAN THOSE DEALING WITH POLITICAL STRUCTURE IS AS FOLLOWS:

POINTS IN THE SECRETARY OF STATE'S LETTER:

A. ART 64:

ACCOUNTABILITY TO THE LEGISLATURE:

POINT NOT TAKEN

UP.

B. ARTS 106 AND 107:

RESTRAINTS ON SAR'S DISCRETION IN FINANCIAL POLICY:

POINTS NOT TAKEN UP.

C. ARTS 2 AND 12:

FAILURE TO INCLUDE REFERENCE TO EXCLUSION FROM SAR'S AUTONOMY OF 'FOREIGN AFFAIRS AND DEFENCE':

POINT NOT TAKEN UP.

D. NO REFERENCE IN BL TO SCRUTINY OF ACCOUNTS BY LEGISLATURE: POINT NOT TAKEN UP.

PAGE 1 CONFIDENTIAL

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