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The Legislative Council to be elected in 1995 would need to conform to these stipulations if it was to continue in being through 1997 and until 1999 (the so-called "through train concept'). The British Government have long believed that the best way to enhance democracy in Hong Kong would be for the Chinese side to agree to amend the Basic Law so as to allow an increase in the number of directly elected members beyond the 20 now envisaged. But the Chinese Government have made plain that they will not change the Basic Law. The. Governor has therefore put forward his parallel proposals. These provide for the election of 20 members from geographical constituencies, 10 by an Election Committee and 30 from functional constituencies. They are fully within the terms of the Basic Law.

You suggested that the Governor's proposals alter the number and basis of the functional constituencies. As I have made plain, they do not alter the numbers. They do represent a widening of the franchise in order better to fulfil the definition in the Hong Kong Government's White Paper that "functional constituencies should be substantial and of importance in the community”. But functional constituency representatives would still be elected primarily by economic category to represent people at their workplace. That is the essence of the functional constituency system. The Basic Law contains no definition of a functional constituency.

You also suggested that the Governor's proposals altered the basis for the Election Committee. The facts are as follows. There has never before been an Election Committee returning members of the Legislative Council in Hong Kong. The Basic Law (Annex 1, para 2) lays down a composition for the Election Committee. But it also specifies (Annex 2, para 2) that this will not apply in the case of the first Legislative Council of the Hong Kong Special Administrative Region. The Basic Law does not therefore specify any composition for the Election Committee to return members in 1995 to what would then become the first Legislative Council of the Special Administrative Region. The exchanges we had with the Chinese on this subject in 1990 were inconclusive. We were prepared to reach agreement in principle. but the Chinese failed to meet the conditions of our offer. They have since discussed the composition of the 1995 Election Committee with visitors from Hong Kong in terms that make it clear they did not regard this issues as settled. The Governor therefore had to make proposals for the composition of this Election Committee, The proposals he has made are fully consistent with the five principles we proposed to the Chinese during the 1990 exchanges. They do not contravene the Basic Law, because the Basic Law is silent on this point.

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Finally, you criticised the Governor's speech on October for containing nothing about cooperation and agreement with China. But I see that in paragraph 152 of that speech the Governor looked forward to Hong Kong's stability and prosperity continuing 'given mutual trust and cooperation from all the parties concerned”. China is clearly one of those parties. The Governor went on in the same paragraph to make this explicit when he referred to his forthcoming visit to Peking (which took place in late October) and said "my goal in Feking will be to push forward the process of trust. This

/relationship must be based on frank discussions

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