TNAG-1434-FCO40-1917-Hong-Kong-leading-personality-Sir-Yue-Kong-Pao--businessman-1986 — Page 159

GRS 1000

RESTRICTED

FM HONG KONG

TO IMMEDIATE FCO

TELNO 1678

OF 02085OZ JUNE 86

INFO IMMEDIATE PEKING

RESTRICTED

(A)

HONG KONG AGREEMENT: RESTRICTED : BASIC LAW DRAFTING COMMITTEE :

PRESS REPORTS

THE MEETING OF THE BLDC SPECIAL GROUP ON CPG/SAR RELATIONSHIP

HELD IN SHENZHEN ON 31 MAY AND 1 JUNE WAS GIVEN PROMINENT COVERAGE IN THE MEDIA. THE MEDIA WAS ATTENDED BY 15 MEMBERS: CHINESE BLDC MEMBER CHEN CHU WAS ABSENT. TWO BLDC VICE-CHAIRMEN, XU JIATUN AND SIR Y.K. PAO JOINED THE MEETING ON SECOND DAY. THE MEETING DISCUSSED CHAPTERS 2, 7 AND 9 OF THE (DRAFT) STRUCTURE OF THE BASIC LAW. CONSENSUS REACHED ON A NUMBER OF ISSUES BUT SEVERAL

CONTROVERSIAL ISSUES REMAINED UNRESOLVED.

PRESS REPORTS

2. THREE DISCUSSION PAPERS EACH FOCUSSING ON ONE OF THE THREE CHAPTERS UNDER CONSIDERATION WERE PREPARED BY HK BLDC MEMBERS GRAHAM CHENG (ON CHAPTER 2), MARIA TAM (ON CHAPTER 7) AND MARTIN LEE (ON CHAPTER 9), ON THEIR OWN INITIATIVE. BEFORE THE MEETING, LU PING TOLD THE PRESS THAT ISSUES ALREADY DEALT WITH IN THE JOINT DECLARATION WOULD BE EASY TO HANDLE. ON THE OTHER HAND, ISSUES REGARDING THE BASIC LAW/CHINESE CONSTITUTION RELATIONSHIP, ''RESIDUAL POWERS'', AND INTERPRETATION AND AMENDMENT OF THE BASIC LAW, WHICH WERE NOT COVERED BY THE JOINT DECLARATION, WOULD REQUIRE MORE TIME FOR DELIBERATION.

3. MAIN POINTS EMERGED AT THE 2-DAY DISCUSSION, AS REPORTED IN THE MEDIA, INCLUDE :

(A) STATUS OF THE BASIC LAW:

CHINESE CONVENOR OF THE SPECIAL GROUP SHAO TIENREN TOLD THE PRESS AFTER THE FIRST-DAY'S MEETING THAT THE BASIC LAW WOULD BECOME PART OF THE CHINESE LEGISLATION, THUS CHINESE OFFICIALS (AND OTHER MAINLAND CHINESE) IN DEALING WITH THE SAR'S AFFAIRS SHOULD THEREFORE ABIDE BY THE BASIC LAW.

(B) LIAISON OFFICER:

MEMBERS SUGGESTED THAT THE CENTRAL GOVERNMENT SHOULD SEND A LIAISON OFFICER OR REPRESENTATIVE TO HK TO TAKE CHARGE OF THE SAR'S EXTERNAL AFFAIRS AND DEFENCE MATTERS. SOME CAUTIONED THAT THE ROLE AND RESPONSIBILITY OF THE LIAISON OFFICER SHOULD BE CLEARLY DEFINED. THERE WAS ALSO A PROPOSAL THAT THE SAR SHOULD SET UP A LIAISON OFFICE IN BEIJING.

RESTRICTED

(C)