CONFIDENTIAL
raise taxes. Hence the problems in getting the budget passed by LegCo.
5. The problem of getting the Hong Kong Administration's business done in the more politically-charged atmosphere of LegCo is a subject we could usefully discuss with the Governor next week. It will also have to be high on the list of priorities for a new Governor to tackle, together with the related question of whether the Executive Council's
composition should be changed to reflect more closely the make-up of LegCo.
6. To explain the acronyms in the letter: UDHK stands for the United Democrats of Hong Kong (Martin Lee's party). The CRC stands for the "Cooperative Resources Centre": a loose collection of more conservative and business minded members, mainly from the functional constituencies and the ranks of the appointed members, led by Mr Allen Lee.
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Alu Loles 22
SEBABT
CONFIDENTIAL