CONFIDENTIAL

0225

MDHOAN 4335

CHINESE SUSPICIONS. BUT SO LONG AS WE KEPT CLOSELY TO ARTICLE 39 OF THE BASIC LAW, WE SHOULD BE ASSURING OURSELVES AS FAR AS POSSIBLE (AND THERE IS NO WATERPROOF DEFENCE AGAINST ACTION UNDER ARTICLE 159) AGAINST ADVERSE CHINESE CRITICISM.

4.OUR LEGAL ADVISERS BELIEVE THAT EXCO SHOULD GIVE FULL CONSIDERATION TO THESE POSSIBILITIES OF OUR CONSTRUCTION PROVISION OR AN QUOTE ENTRENCHMENT UNQUOTE PROVISION VIA THE LETTERS PATENT/ARTICLE 39 OF BL OR SOME COMBINATION OF BOTH BEFORE DECIDING TO PUBLISH THE BILL EVEN AS A CONSULTATION DOCUMENT.

5.OUR LEGAL ADVISERS REMAIN OF THE VIEW THAT SECTION 4 OF THE BILL PLACES AN IMPOSSIBLE TASK ON THE ATTORNEY-GENERAL. IF SOME PROCEDURE PRIOR TO ENACTMENT IS REQUIRED TO EXAMINE AND VENTILATE THE POSSIBILITY OF CONFLICT BETWEEN A LATER BILL AND THE BOR, ONE POSSIBILITY WOULD BE TO FORMULATE A STANDING ORDER OF THE LEGISLATURE REQUIRING A PRIOR RESOLUTION OF THE LEGISLATURE BEFORE SECOND READING IF A SPECIFIED NUMBER OF MEMBERS RAISED THE ISSUE OF CONFLICT ON ANY BILL (CF THE SPECIAL PROCEDURES

REGARDING FINANCIAL BILLS).

HURD

YYYY

DISTRIBUTION

60

ΜΑΙΝ

57

.HONG KONG AGREEMENT

.(RESTRICTED)

LIMITED

HKD

HD/FED

RESEARCH (FE)

PUSD

NEWS D

PS/MR MAUDE

PS/LORD BRABAZON

MR GILLMORE

MR MCLAREN

ADDITIONAL

3

MR WHOMERSLEY, LEGAL ADVISERS MR FIFOOT, LEGAL ADVISERS

MS BARRETT, LEGAL ADVISERS

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