CONFIDENTIAL

Chinese pressure for convergence between the 1995 LegCo

and the BL. The BL is explicit that provided the 1995

LegCo conforms to the requirements of the BL, its members

can become members of the first SAR LegCo. The problem is

in the requirements, the most difficult of which is the

stipulation that no more than 20% of LegCo should be made

up of non-Chinese nationals. The 1995 LegCo would also

have to have 10 members returned by an "Election

Committee" (not further defined) in addition to the 20

directly-elected and 30 from functional constituencies.

The need for reform of electoral arrangements in time

for the 1995 elections. The Chinese are pressing for all

arrangements for the 1995 elections to be agreed with

them. HKG are already holding a review and LegCo have

appointed a Select Committee to investigate the subject as

well. A number of the steps which Hong Kong believes are

necessary will be controversial with the Chinese: for

example lowering the voting age to 18 (China opposes, despite the fact that 18 is the voting age in China) and

the plan to establish an independent Electoral and Boundary Commission (albeit appointed by the Governor).

11. Issues for Discussion: the timing and level of an

approach to the Chinese on increasing the pace of democratisation, and whether we will accept a Chinese veto

or take unilateral action at the risk of disrupting the "through-train". How to How to face Hong Kong opinion more squarely with the choice between continuity and more

democracy. On the question of convergence with the BL, the

Chinese have been successfully using the smooth transition

card to secure movement from us on other issues: can we turn

it against them in this case by putting more of the onus on

them to ensure that there is no discontinuity over LegCo

membership in 1997.

FIZABP/4

CONFIDENTIAL

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