PERSONAL AND CONFIDENTIAL

The Secretary of State noted decision would depend on what time. But you will be

First, we could discuss the possibility of increasing the number of seats with the Chinese, having decided in our own minds that our top priority would be to preserve the LegCo through train in 1995. Second we could decide that, having discussed the issue with the Chinese, we would increase the number of directly-elected seats in 1995 even in the face of Chinese objections. We pointed out all the risks of abandoning the through train. that, to some extent, a final was happening in China at the interested to know that he saw some attractions in going for an increase in the number of directly-elected seats, and if necessary facing the Chinese down on this issue. He commented that one would be on strong ground politically in doing so. (This is clearly an issue on which a lot of further work will be required before a paper can be put to Cabinet.)

We discussed other options for building up the democratic credentials of the 1995 LegCo without falling foul of the Basic Law. The Secretary of State was interested in the possibility of expanding the franchise for some of the functional constituencies. He also noted that there could be scope to build up the "Election Committee" (which is to elect 10 members) into a sizeable electoral body.

The Secretary of State recognised that a number of the convergence issues, such as the BL stipulation that no more than 20% of the through train LegCo could be made up of non-Chinese nationals, or those with the right of abode overseas, presented enormous problems. He was inclined to agree that we would need to put the onus on the Chinese to explain how a smooth transition could be achieved in this case. He also hoisted in the problems over Chinese opposition to lowering the voting age and to the electoral and boundary commission. Some interest was also expressed at the meeting in the voting system which would be used in 1994/95. I think Ministers would like a chance to comment on that before decisions are set in concrete at your end.

We also touched on the Chinese contention that Martin Lee could not ride the through train. The Secretary of State accepted that it was reasonable to expect LegCo members to take an oath of alliegiance to the SARG but he found it quite unacceptable that they should be subjected to a separate political test as to whether they met the requirements set out in the Basic Law.

MATAAS

/First Chief Executive

PERSONAL AND CONFIDENTIAL

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