EFFECT OF FISCAL RESERVES COMMITMENT (TAXES, SOCIAL

SERVICES)

- A matter for Hong Kong Government. Understand they are

confident that this should not distort other plans.

BILL OF RIGHTS

- See no incompatibility with Basic Law. It simply puts in

one law all the rights guaranteed in the Joint Declaration. (Chinese did not raise this during visit.)

SUCCESS OF LEGCO ELECTIONS?

- For Hong Kong people to judge. But hope for good

turn-out.

(If pressed on what percentage turn-out) That depends on

the weather and what is on television: but hope higher than

for District Board elections.

POLITICAL PARTIES IN HONG KONG?

The British sytem of

A matter for Hong Kong people. parties is not everyone's cup of tea.

EXCO: APPOINTMENT OF NEW LEGCO MEMBERS

- Too early to say. Governor will want to consider carefully who would make good ExCo members: very responsible and important jobs involving hard work.

MTHAXS/3

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