SECRET

in the exchange of documents

the principles

set out

between the British

and

February 1990.

Chinese

governments

in

4.

The

Governor

invited the Political Adviser

to comment on how the proposals related to the five principles agreed between the two Governments.

5.

of

The Political Adviser said the modifications

either fell within the principles of the Basic Law or the five principles, but it was difficult to reconcile

any of the proposals under both. The proposals to include FCs in the EC may be challenged on the ground duplication of electorates. The proposal to use occupational groups in Option D may be challenged on

the ground that such groups are not included in the

The Governor said we should bear in mind

the fact that the Basic Law applies to the 1999

elections and is silent on the arrangements for the

Basic Law.

1995 elections.

6.

The Chief Secretary said that a model along

the lines of the Basic Law Consultative Committee

would probably satisfy the criteria set out in the

five principles

as the Chinese

and the requirements of the Basic Law

saw them. He said the Administration

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