TNAG-1355-FCO40-1796-Constitutional-development-in-Hong-Kong-1985 — Page 219

JH1ACO

Dr Wilson

oul

HKK 011

RECEIVE

DISK

INDEX

- 2 AUG 1985

PS/MrLuce

Minister

سارد

CONFIDENTIAL

25/7/11.

HKK 011/1

FROM: A C Galsworthy,

DATE: 24 July 1985

HKD

HONG KONG: REMUNERATION AND ALLOWANCES FOR UMELCO MEMBERS

157

A B 1. Mr Luce has seen my submission of 20 May concerning Hong Kong

Government proposals for the introduction of a stipend for UMELCO

members of $8500 (now about £810) per month. Mr Luce may wish to be

aware of recent developments in Hong Kong with regard to these

proposals.

C

2.

EXCO originally decided on 14 May that legislation should be

introduced in to LEGCO during the current session (which ends on 7

August) to provide for the new stipend by statute. In the light of

subsequent public controversy over the LEGCO (Powers and Privileges)

Bill (since enacted) EXCO has now reconsidered this earlier

decision. EXCO decided on 9 July that the new payment should be

provided for, at least initially, by administrative means only. То

this end the Hong Kong Government have submitted to the Finance Committee of LEGCO proposals which will provide for the new stipend;

and also for regular adjustments to the current reimbursement

allowance (present maximum $9,500, or £900) in line with inflation.

3.

Hong Kong have taken the step of deferring any legislative

measure on the new stipend in order

to try to avoid further public

difficulties over constitutional

changes similar to those which

LEGCO (Powers an d

Privileges) Bill.

recourse to the administrative

arose

over the

anticipate that

legislative path

proceedings do not

this stage will

at

in

Hong Kong

rather than the

will avoid this danger: Finance Committee

attract wide publicity; and administrative action

not preclude the new-style LEGCO, which will open

October, from examining the issue a fresh and making whatever

CONFIDENTIAL