TNAG-1434-FCO40-1917-Hong-Kong-leading-personality-Sir-Yue-Kong-Pao--businessman-1986 — Page 88

VBLAQR

CONFIDENTIAL

SIR Y K PAO'S VISIT TO BRITAIN: SEPTEMBER 1986

(b) Hong Kong: Basic Law

Background

1.

Sir Y K is one of 8 Vice-Chairmen of the Basic Law

Drafting Committee (BLDC).

2.

Five special sub-groups of the BLDC have been established to look at detailed aspects of the Basic Law. A round of special group meetings took place recently: the

groups on the economy, rights and

CPG/SAR obligations, relations and on the political system all met in Xiamen in the last week of August. Discussion in the first three

to generally

encouraging: consensus

reached on a number of sensible provisions or principles for incorporation in the Basic Law. Predictably, there was much less consensus in the group on the political system. Opinions remain divided, both between Hong Kong and mainland members and among Hong Kong members, particularly

seems

on:

have been

was

(a) selection of the Chief Executive;

(b)

the

relationship between the executive and the

legislature;

(c) selection and composition of the legislature.

We are giving thought to whether and how we might influence the debate. The next meeting of this special group is 6-8

November.

CONFIDENTIAL