If pressed (Did you raise this with the Chinese?)

I told Premier Li Peng that in due course we would want to

discuss a range of issues concerning the 1995 LegCo

elections.

WHY SHOULD THERE BE FOREIGN "OBSERVERS" FOR SEPTEMBER

ELECTIONS?

-

Hong Kong is a free and open society; anyone is free to be in Hong Kong at the time of the elections. But no question of giving official status or making special arrangements for

anyone to "monitor" the elections.

-

Responsibility for supervising the elections belongs to

the Hong Kong authorities.

ANY QUESTION ON CAPITAL PUNISHMENT

-

This is a matter for the Hong Kong Government.

PROGRESS OF NATIONALITY SCHEME

-

Understand processing of first tranche going smoothly.

Places in under-subscribed categories will be re-allocated

to second tranche (timing not yet set, but nearer 1997).

- Believe scheme has helped restore confidence in the public

and private sectors. Also had catalyst effect in encouraging other countries to come up with similar schemes;

(Defensive) A scheme for all Hong Kong people would not

have been feasible: could not expect future Governments to

accept such an immigration commitment.

PROCESSING APPLICATIONS IS SO SLOW KEY PEOPLE ARE EMIGRATING

-

This is a new point which we shall discuss with the Hong

OAKAFE/2

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