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have seen intelligence reports indicating that Allen Lee has been in touch with the Chinese Intelligence Services.
On the Governor's proposals, the Cooperative Resources Centre have produc... a position paper (enclosed) setting out their views. This is likely to form the basis for their presentation to the Prime Minister. I enclose the Governor's report of a talk he had with the Cooperative Resources Centre on 6 January, and of a press statement he released afterwards. The Governor told the Cooperative Resources Centre that the Prime Minister would no doubt ask whether they had alternative proposals to offer.
The Governor has begun detailed discussions with ExCo about the terms of the draft legislation which he will put to LegCo. The Hong Kong Government have confirmed publicly that these discussions are underway, and that ExCo has already agreed an uncontroversial Bill to establish a Boundary and Election Commission and a compendium of alternative proposals
for publication.
Much of the discussion at the Cooperative Resources Centre's recent meeting with the Governor was about the Election Committee. The Governor's proposal is that the Election Committee, which will elect 10 members of LegCo, should be composed of members of Hong Kong's District Boards who themselves will be directly elected. The Governor told the Cooperative Resources Centre that the key point is that members of the Election Committee should themselves be elected. The Cooperative Resources Centre may claim to the Prime Minister that the Governor had agreed to a revised composition of the Election Committee, along the lines of the four categories envisaged in the Basic Law. This is not the
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