CONFIDENTIAL

We also wonder about the reaction in Hong Kong to the proposed

series of BN (0) cut off dates, given that the first one would be as early as September 1993, almost four years before the change

in the territory's status, and that it would come into effect

only a few months after the deadline is set by Parliament. Having a whole series of cut-off dates and a get-out provision

would make for difficulties in drafting the order, difficulties

in administration and confusion in the minds of the public. It

is a complicated scenario which needs to be looked at carefully. We recognise that the scheme is resource-driven but is this the

simplest one devisable? Is there no scope for adjusting

resources so that later and fewer cutoffs are possible?

I have enquired about fitting the Orders-in-Council into the 1992-93 Parliamentary timetable and have been advised that there

would be little difficulty. It should be possible to complete

the whole legal and Parliamentary process within the space of say

six months.

Yours sincerely

CarKelly,

CJ KELLY

P.S. Since drafting the above I have discussed the matter with

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CONFIDENTIAL

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