CONFIDENTIAL AND PERSONAL
10. The row has now surfaced in a letter which Emily Lau has reportedly sent to the Prime Minister and the Secretary of State. The liberals also have the satisfaction of denying Selina Chow the Chairmanship of the Committee. What all this has served to ensure is that every aspect of the Committee's work is going to be contentious in LegCo terms the age of consensus is truly dead.
The Future of the CRC
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11. There is much optimism in the CRC camp that they are now getting their act together. My CRC interlocutors have told me that they are working together well as a team; and that Allen Lee is an effective and pragmatic leader. At a recent meeting in Macao the CRC laid the basis for its evolution into a fully fledged political party: steps are now being taken to strengthen its organisation and discipline and to improve its relations with other LegCo members and the general public. Spokesmen on special policy issues are soon to be appointed.
12. The outcome of the Standing Committees affair should have boosted the CRC's standing vis a vis China. The CRC had a good meeting with Lu Ping while he was here; and although they did not secure his endorsement of the Arculli model, it seems likely that the Chinese will acquiesce in it. Indeed, they should have good reason to be quietly satisfied with the outcome.
13.
It remains to be seen whether CRC can further improve their relations with Peking. In practice, they must tread a narrow line: they need to win Peking's blessing in the long term (and rumour has it that Li Ka Shing and T K Ann have told Lu Ping that China should give its support to Allen Lee in 1995, rather than to T S Lo et al); but they also know that a public image of excessive cosiness with the Chinese would also be bad for CRC's electoral prospects.
The Liberal Camp
14.
Martin Lee and his supporters are feeling increasingly frustrated about the denial of what they regard as their rightful influence on LegCo and the HKG, which as holders of "the mandate of the people" they believe they are entitled to expect. It seems that on all the key issues, the CRC are able to muster a small majority of votes over the liberals, as the outcome of recent divisions has demonstrated. I was struck by Martin Lee's bitterness over the recent turn of events, and notably his exclusion from the Governor's dinner for Lu Ping in early January. He is also bitter about the lack of consultation from the HKG on issues such as importation of labour. In short, he feels he is not being given the recognition that he believes a leader of the opposition should receive.
CONFIDENTIAL AND PERSONAL
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