CONFIDENTIAL

001154

MDHOAN 7877

CHINESE WOULD SEE THIS AS INSUFFICIENT AND WOULD DEMAND THAT THERE BE CONSULTATIONS BEFORE THE AMENDING BILLS ARE PUT BEFORE LEGCO.

(C) NOT INFORMING THE CHINESE AT ALL BEFORE PUBLICATION, BUT BRIEFING THEM FULLY IF THEY ENQUIRE THEREAFTER. THE ADVANTAGE OF THIS COURSE IS THAT IT SAFEGUARDS THE POSITION THAT LEGISLATIVE AMENDMENTS ARE A MATTER FOR HKG AND LEGCO. HOWEVER, THE CHINESE WOULD RESENT OUR ACTING UNILATERALLY AND THEY WOULD PROBABLY OBJECT QUITE STRONGLY.

7.

HKG FAVOUR PROCEEDING CASE-BY-CASE. THEY ALREADY HAVE DRAFT AMENDMENTS READY FOR TWO ORDINANCES CONCERNING CORRUPTION (THE PREVENTION OF BRIBERY ORDINANCE AND THE INDEPENDENT COMMISSION AGAINST CORRUPTION ORDINANCE). THESE ARE RELATIVELY MINOR, AND THEY HAVE ALREADY BEEN MENTIONED VERY INFORMALLY TO THE CHINESE. FOR THESE HKG FAVOUR OPTION (C), IE PUBLICATION WITHOUT FURTHER CONSULTATION OR BRIEFING BUT PROVISION OF FULL BRIEFING IF THE CHINESE ENQUIRE. IN THE LIGHT OF CHINESE REACTIONS ON THESE TWO ORDINANCES, THEY WOULD SEND RECOMMENDATIONS FOR HANDLING THE OTHERS (SOME OF WHICH MAY PROVE INTRINSICALLY MORE DIFFICULT). UKREP JLG CONCUR.

ARGUMENT

8. THE DIFFICULTY IS THAT FOR THE CHINESE TO AGREE TO AMENDMENTS TO LOCAL LEGISLATION TO MAKE IT CONSISTENT WITH THE BOR, THEY WOULD CAT LEAST IMPLICITLY) HAVE TO GIVE UP THEIR OBJECTIONS TO THE BOR. IN FACT THEIR HOSTILITY TO THE BOR HAS GROWN OVER THE PAST YEAR. WE KNOW THAT THEY HAVE BEEN MONITORING RELATED JUDICIAL PROCEEDINGS. MOVEOVER EVEN IF THEY WERE TO ACQUIESCE IN THE AMENDMENTS TO THE TWO CORRUPTION ORDINANCES, THEY WOULD BE FOREWARNED AND MIGHT DEMAND CONSULTATIONS ON ALL SUBSEQUENT (AND MORE CONTROVERSIAL) AMENDMENTS THAT WE WOULD NEED TO MAKE.

9.

THERE IS BOUND TO BE A ROW ABOUT THIS WITH THE CHINESE. APART FROM THEIR HOSTILITY TO THE BOR ITSELF, THEY COULD ARGUE THAT THE PROPOSED AMENDMENTS WOULD REDUCE THE POWERS OF THE EXECUTIVE, WOULD MAKE IT HARDER TO MAINTAIN LAW AND ORDER, WOULD REPRESENT A FURTHER UNILATERAL SHIFTING OF THE 1984 HONG KONG GOAL-POSTS, WOULD BE BAD FOR STABILITY IN HONG KONG AND, SINCE A SMOOTH TRANSITION.

WE HAVE GOOD ANSWERS TO ALL THESE POINTS,

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