corporate voting.

They proposed that the nine new functional

constituencies should be: the Hong Kong/Chinese Enterprises Association: labour: agriculture and fisheries: textiles and

garments: Importers and Exporters Association:

Kai Fong

Welfare Associations: insurance: maritime: and sports. These constituencies should also be based on corporate voting.

77. In the view of Her Majesty's Government and the Hong Kong Government, the Chinese side's proposals would not deal adequately with the problems associated with corporate voting and very small constituencies set out in para 74. above. Some of their specific proposals also failed to meet the

requirements for functional constituencies.

Kai Fong Associations are not economic or professional groups of importance in the community. The proposal for a Chinese Enterprises Association constituency is inconsistent with Hong Kong's general approach of treating all investors and

enterprises in the same way. It could be divisive to create constituencies on the basis of "national" interests rather than economic and professional groups. Many Chinese enterprises were already registered electors in other functional

constituencies. The Chinese proposal for an Insurance Functional Constituency could only be formed by splitting the existing Financial Services constituency which was already very small. Given the small number of authorised insurers in Hong Kong (229) the insurance constituency would by itself be tiny.

78. The British side put forward revised proposals on the nine new functional constituencies in round nine. These took

account of the Chinese proposal that functional constituencies

should all be based on organisations, and also built on six of the nine specific Chinese proposals. In subsequent Rounds, the British side offered a number of further revisions to their list of Functional Constituencies, in a major effort to bridge

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