Peter F Ricketts Esq Hong Kong Department FCO

CONFIDENTIAL AND PERSONAL

Miz 01/3

Dear Peter,

HONG KONG: POLITICAL SITUATION

&

Office of the

British Senior Representative

Sino-British Joint Liaison Group

28 January 1992

reach circulated in fax copy

Summary

1.

16/i.

The CRC appear to have gained the upper hand over the liberals for the time being, following the defeat of the liberals' preferred models for Standing Committees and the CRC's dominance of the LegCo Select Committee on the electoral review. However, the liberals have succeeded in widening the Committee's terms of reference to include the composition of the 1995 legislature.

2. The liberals and their supporters are increasingly frustrated over the denial of the influence in LegCo and on government which they believe their election success entitled them to expect. They are likely to continue to look for issues on which they can attack the HKG and embarrass their political opponents.

3.

The main current political issues are:

the inflated cost of the new University of Science and Technology;

the HKG's decision to import a further 25,000 workers;

the retirement of the Governor and the quest for his

successor.

The escalating cost of the airport project is likely to move to the centre of the political stage in the next couple of months, as will the electoral review.

4.

Doubts about the ability of the new LegCo to conduct its business effectively: only four Bills have been passed in the first three months of the current session.

5.

/ Detail

CONFIDENTIAL AND PERSONAL

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