CONFIDENTIAL

in

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Our assessment is that the Chinese reaction would

probably depend upon the nature of the amendments put forward. The POBO and ICAC Ordinance amendments as set out the draft ExCo paper and draft Bills attached are conservative and therefore, should not give rise to a severe reaction, although anything that diminishes the ICAC's powers will cause them concern and they will doubtless want to know the details. The amendments to the Crimes Ordinance, mainly concern the provisions on loitering, which are Lo be retained in a modified form. These amendments should not unduly upset the Chinese, although they would no doubt prefer the provisions to be retained in their existing forms. Provided that the waters were not muddied by other issues, we expect the Chinese would react in a low-key manner similar to their public position upon enactment of the BOR, i.e. "we reserve the right to review compatibility in 1997." Amendments to the Societies Ordinance are likely to be more controversial. do not yet know what the contents of the Police Force Ordinance and Immigration Ordinance amendments are likely to be but a very conservative approach will be adopted.

We

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plan is to circulate the ExCo memo on amendments to the POBO and ICAC Ordinance with 'China dimension'

paragraph added draft of the latter attached - immediately after the Christmas holiday and finalise it within the week beginning 6 January. I should therefore be grateful for your and copy addressees' views on the above in general and the draft 'China dimension' paragraph I should also be grateful for your view as to whether there is a need to consult the FCO.

a.s.a.p.

Yours ever,

( G.M. Orr )

for Secretary for Constitutional Affairs

C.C. PA

LO(IL)

S for S (Attn Mr Morris, Mrs Marion Lai

and Mr Isaac Chow) (w/o encl) (w/o encl)

Commissioner, ICAC

Internal

DS (CA) 1

DS (CA) 2 PAS (CA) 5

P4231

CONFIDENTIAL

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