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3

5.

"The British side propose to abolish appointed seats in the District Boards and Municipal Councils with effect from

September 1994 and March 1995 respectively. The Chinese side propose to retain an appropriate proportion of appointed seats in the District Boards and Municipal Councils to be constituted in 1994 and 1995. The

Chinese side state that from 1 July 1997, the HKSARG will determine the number of appointed seats of the District Boards and Municipal Councils in accordance with the provisions of Article 98 of the Basic Law."

This formula was different from that put forward in Round 15, notably in the omission of the words "on its own" after the reference to the HKSARG. The Chinese side made clear in their presentation of this proposal that "if the British side insisted on abolishing appointed seats in 1994/95 the Chinese side would in the future establish an appropriate

After 30 June 1997 the SAR proportion of appointed seats.

Government would, in accordance with Article 98 of the Basic Law, determine on their own the number of appointed members of District Boards and Municipal Councils". They said that this meant simply that the HKSARG would determine on their own the

It did not mean that number of appointed seatsyin DBS and Mes

the SARG would in the future determine on their own whether to retain or abolish appointed seats; that decision would be for "the Chinese side".

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Even if the British side had been able to accept the Chinese prerequisite for such a formula, namely the exclusion from the deal of the LegCo voting method

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and we could not do

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