IN CONFIDENCE

I enclose a summary of the Governor's main proposals. They fall into two parts. First, there are steps to be

taken straightaway to make Hong Kong's representative institutions more effective, and the Hong Kong Government more accountable to them. The Governor intends to separate the membership of the Executive and Legislative Councils

(ExCo and LegCo) so that no non-official members of LegCo would also serve on ExCo. This will end the arrangement whereby representatives of some political groups in ExCo

served on LegCo while others did not. It will enable both

Councils to perform more effectively by clarifying the functions of each. In particular, it will free all LegCo politicians to develop their parties and programmes free

from the constraints of ExCo membership. The Governor is

bringing on to ExCo some respected members of the Community

without party political involvement. He will also be taking other steps to improve accountability: he will step

down as President of LegCo and make himself available

regularly to answer questions there.

A new

Government/LegCo Business Committee will be established to

enable the administration to discuss the handling of its

legislative and financial programmes with representatives

of LegCo.

These steps are all part of maintaining effective

British administration of Hong Kong up to 1 July 1997, and

on these issues the Governor will therefore be announcing

decisions.

Second, there are the changes that will be needed for

the 1995 LegCo elections. I have previously assured the

House that we would continue to press the case for a faster

pace of democratisation. I did so when I met the Chinese

Foreign Minister in New York on 25 September. The Chinese

position remains that the Basic Law cannot be changed

before 1997, and that no increase in the number of directly

elected seats in 1995 beyond the 20 set out in the Basic

IN CONFIDENCE

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