COVERING CONFIDENTIAL
4.
Hong Kong propose now to rectify the loophole before 17 July. One option (para 3 of TUR) is to amend the
exemption order to ensure that it applies only to local
residents, and it will be encouraging to receive early confirmation that this is the way they intend to proceed.
However, an amendment to the order needs to be laid before
LegCo who may, within 28 days, ask for a debate. Whilst we
are told that the Council cannot present the coming into force of the amended order, It is not clear from the HK response whether the amendment will have validity from 17 July, and whether or not LegCo can, by asking for a
debate, delay the introduction of the amendment. I have
sought legal views on this point from Paul Fifoot.
Hag. C. 5. Mr Gozrey's minute to you of 9 July requests an
inspired written PQ if we can refute the Press reports.
Hag.. These articles are still factually correct and, as I see it,
will remain so until we receive a positive indication of what Hong Kong propose to do. Then an inspired PQ would
enable the Secretary of State to set the record straight,
although whether we can get away with a bland statement of
policy without referring to "closing the loophole" is
something else again.
T Furness
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