!

CONFIDENTIAL

6. When the final draft of the Basic Law was published in Peking,

The it was studied very carefully both in Hong Kong and London. major issue was that of elections, but other matters have aroused interest, and we are not entirely happy with 2 articles.

(a) Article 24.2 which states that non-Chinese seeking permanent residence in HKSAR must have entered Hong Kong with valid travel documents. This is previously meant to prevent Vietnamese boat people from settling in Hong Kong but also serious problems for

non-Chinese both in Hong Kong.

(b) Article 106 imposes restriction on the SAR's discretion in

financial policy.

7. Bill of Rights was approved by ExCo on 6 March. It will mirror the provisions of the International Covention on Civil and Political Rights (ICCPR) and will enact article 39 of the Basic Law.

FAYANI

CONFIDENTIAL

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