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HK Commercial Daily editorial

Qian Qichen at a meeting with a visiting Heung Yee Kuk delegation

Chuen Pan in Wen

Wei Po

Chinese sources quoted by HK Economic Journal

Wen Wei Po

editorial

HK Commercial Daily editorial

Siu Cho in Ken

Wei Po

CONFIDENTIAL

7

If the British side truly understands the Chinese stand and takes the opportunity of the ministerial meeting to return to the "three conformities", there should be faster progress at the talks.

The Chinese side has not raised any new conditions for the talks during the ministerial meeting. It has only asked for the British side's adherence to the "three conformities" in resolving the 1994/95 electoral arrangements.

Even the Governor has to admit the negative effects his "three violations" package has caused to HK. We hoped the British side will demonstrate sincerity and return to the basis of the "three conformities" so that the talks can achieve results conducive to a smooth transition.

China may make concessions on the voting model for some functional constituencies. Instead of corporate voting, it may agree to proposals which allow company directors to vote. However, the Chinese side is still firmly opposed to the Governor's proposals to widen the franchise of the nine new functional constituencies.

The Governor's remark to The Guardian that even without an agreement HK can continue to operate reflects his intention to unilaterally legislate and implement the Patten package. It shows that he is gambling with HK's overall interests and smooth transition in exchange for his political career. If no agreement is secured, there will be political chaos and investors will be scared off.

It is not known whether after Douglas Hurd's China visit, the two sides can resume cooperation. This is because Mr Patten has held fast to his "three violations" package and has continued to confront China.

Full Democracy '95's petition to Douglas Hurd for amendments to the BL to allow for a fully directed legislature in 1995 was initiated by the Governor to increase the British side's "public opinion" bargaining chip in the talks.

CONFIDENTIAL

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