TNAG-1437-FCO40-1921-Constitutional-development-in-Hong-Kong-1986 — Page 28

18. HK IS NOT AN INDEPENDENT STATE AND FOREIGN SYSTEMS ARE NOT

EASILY COPIED. BUT IT IS NECESSARY TO REJECT INEFFICIENT AND DESTABILISING SYSTEMS. DIRECT OR INDIRECT ELECTIONS (MUST) WORK WITH THE SYSTEM. IF THEY ARE CONDUCIVE TO PROSPERITY AND STABILITY, PEKING WILL SUPPORT THEM. THE CHIEF EXECUTIVE AND THE EXECUTIVE #TSELF WILL BE ACCOUNTABLE BOTH TO THE CHINESE CENTRAL GOVERNMENT AND TO THE LOCAL LEGISLATURE, ENSURING THAT HK PEOPLE WILL NOT LOSE THEIR EXISTING FREEDOMS.

19. THE HIGH DEGREE OF AUTONOMY OF THE SAR IS NOT ABSTRACT BUT *IS PROVIDED FOR IN DETAIL IN THE JD. THESE RIGHTS ARE CONSIDERABLE, SUBJECT TO CHINA'S RULE. THE LOCAL COURTS OR

LEGISLATURE SHOULD INTERPRET PROVISIONS IN THE BL RELATING TO

MANAGEMENT OF THE TERRITORY. INTERPRETATION OF CLAUSES ON THE

RELATIONSHIP BETWEEN CENTRAL AND LOCAL GOVERNMENTS SHOULD REST

WITH THE NPC. PEKING WILL LISTEN TO HK VIEWS ON A WIDE

BASIS. BUT THOSE CONCERNED ABOUT THE FUTURE SHOULD NOT CONFINE

THEMSELVES TO THE BRITISH MODEL).

ENDS.

YOUDE

HONG KONG AGREEMENT: RESTRICTED

LIMITED

HD/HKD

HD/FED

RESEARCH D (FE)

D/HD PUSD

MP. WILSON

-4-

COPIES TO:

MR FIFOOT, LEGAL ADVISERS MR WOOD LEGAL ADVISERS