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action to align the Colonial Regulations with the Basic Law on this point and that since Colonial Regulations will cease to apply on 1 July 1997, there was no need for consultation with China first.

We should not be under any illusions that the Chinese will be hoodwinked by this. The local staff associations will

8.

anyway kick up a fuss. But there are no easy options, and I recommend that we suggest the above as an approach for HKG to consider. We might also suggest that once it became known that HKG were considering a change in policy and if there was an outcry from the Chinese, one option would be to pass the ball to a suitable body to review the policy (focusing on its relevance to present circumstances rather than the BOR angle) and to put forward recommendations. Possibilities include the Public Service Commission or (more sensitive with the Chinese) a LegCo Select Committee or the LegCo Public Service Panel. This option might buy time and delay the issue coming to a head until after we have completed discussions with the Chinese on the 1994/95 election arrangements.

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PF Ricketts

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cut came and will have to change the bealisation policy,

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would at least make it more dilberts.

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the change in policy.

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