Redacted Under FOI

Exemption Sec 27(1)

CONFIDENTIAL

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the kind of people who will be in line for that kind of job- in 1997 can be identified. The important point here is that it must be likely that many of the currently efficient holders of the relevant offices, and those who in the normal course of events aspire to them, are people who are anxious to take advantage of the nationality package, and therefore are not people who will be eligible for the relevant posts after 1997. We must bear in mind that it may be very difficult to identify those who may be eligible for appointment as principal officials and Chief Executive in the run up to 1997. Nevertheless, even if we cannot do so, the establishment of institutions to mirror the post-1997 structure serves an end in itself in getting Hong Kong used. to a domestic Executive distinct from the Govemor.

8. On a point of detail, I think we need to give very careful consideration to the extent to which we connive with the Chinese to produce a Chief Executive designate in 1996/97 if that means "fixing" the way the Election Committee works. A further factor is that whoever emerges as a proto-Chief Executive from solely British machinery in the period before 1997 may well be unacceptable to the Chinese, if only because they do not wish to appear to take over a senior British functionnaire. This kind of consideration probably militates against any suggestion that the person elected in 1996/97 as the first Chief Executive can come into office as proto-Chief Executive before the 1st of July 1997.

9. A further matter which needs to be considered is whether at some stage before 1997, we should consider the possibility of holding an election, on the lines set out in the draft NPC decision (Page 54 of the February 1990 text), for the proto-Chief Executive. Again, the argument can be put both ways. If we consider that there should be substance in the electoral process of the Election Committee in 1996/97, it: will be useful to have a prior run of a proper election of the comparable committee under British auspices. On the other hand, if we consider that the 1996 election should be... "fixed" it would be best to avoid a prior run.

10. A number of passages in the paper deal with selecting a field for principal officials who are to be appointed by the Chief Executive on, or immediately before, the 1st of July 1997. There seems merit in this proposal and it would be desirable if people in this category had relevant experience (which does not necessarily mean experience in the same office) in the run up to 1997. This too will mean the selection of new people who will not have taken advantage the nationality package.

PF1AAM

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