12.

Mr Lee described the UDHK's likely attitude to legislation in the event of a breakdown as follows:

(a) the UDHK would support nothing less than the 1992 package. They would under no circumstances support legislation based on the 1993 proposals, even if that meant that without the UDHK vote the legislation would fail to secure a majority.

(b) if there was no majority in support for either the 1992 or 1993 proposals, the UDHK would call on the Governor to dissolve Legco and call early elections on the basis of the existing legislation. They would urge him to replace all the existing. Highly dam appointed members with democrats like Christine Lo.

13. He thought that the mood in Legco was becoming more conservative. He doubted whether the support of K K Fung, example, could be relied upon. As for the Breakfast Group Independents, they would bend with the prevailing wind.

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14.

I asked how the UDHK would react if, after a breakdown, majority of Legco members were to call on HMG to return to the negotiating table; or if a Legco consensus were to form around a substantially diluted version of the 1993 proposals. He replied that in that case the Governor would have failed in his mission to bring greater democracy to Hong Kong. It would be as bad as selling out to the chinese in the talks. The Governor might as well return home. He would have lost all credibility. In such circumstances, the UDHK would insist on dissolution of Legco and

early elections.

15. I asked Martin Lee if he really thought that it was wise or feasible for the Governor to take such a drastic step. He would be going against the wishes of a majority of Legco. How would the community react to that? Mr Lee responded that the present LegCo was not representative of the community: for the most part it had not been directly elected. Nor was it this Governor's Legco: most of the appointed members had been appointed by his predecessor. If the present LegCo were to reject the Governor's legislation, the only thing to be done would be to dissolve it and let the people decide. Whatever, the outcome of such elections, he (Martin Lee) would respect and abide by it.

COMMENT

16. Martin Lee spoke with some bitterness about these matters. I think he now recognises that the tide in Legco (and possibly also in the community) is turning against him, and regrets the opportunities lost and hopes unfulfilled. He may also fear that the ground is being prepared for a "sell out" on the key issues, although I tried to disabuse him of this.

CONFIDENTIAL

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