TNAG-1440-FCO40-1924-Constitutional-development-in-Hong-Kong-1986 — Page 187

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RECRIOTED

(B) THE FUTURE POLITICAL STRUCTURE SHOULD BE ONE THAT WOULD BE ABLE

TO RECONCILE THE INTERESTS OF DIFFERENT CLASSES AND AVOID SHARP

CONFRONTATIONS. THE IMPORTANT POINTS WERE, THEREFORE, TO ENSURE

THAT THE DISTRIBUTION OF POWER SHOULD BE SUCH AS TO AVOID EXTREME

DEVELOPMENTS, AND TO ENSURE THAT THE EXECUTIVE AND THE LEGISLAT I'VE

AUTHORITIES WERE COMPOSED OF MODERATE AND CONSERVATIVE PEOPLE WHO

HAVE THE OVERALL HK INTEREST IN MIND. THE MORE FEASIBLE METHOD

APPEARED TO BE FOR THE LEGISLATURE TO. BE COMPOSED OF REPRESENTATIVES

OF DIFFERENT CLASSES, DIRECTLY ELECTED BY FUNCTIONAL CONSTITUENCIES,

IN APPROPRIATE PROPORTIONS. ALTERNATIVELY, SOME MEMBERS COULD BE

DIRECTLY ELECTED BY THE WHOLE OF HONG KONG, AND SOME BY ELECTION

BY THE FUNCTIONAL CONSTITUENCIES. AS REGARDS THE SELECTION OF THE CHIEF EXECUTIVE, THE BEST MEANS WOULD BE FORE PROSPECTIVE CANDIDATE(S) TO BE SELECTED BY THE FUNCTIONAL CONSTITUENCIES AND

THEN TO BE ELECTED BY THE WHOLE POPULACE BY AN ABSOLUTE MAJORITY.

THE CHIEF EXECUTIVE SO ELECTED WOULD BE MORE ACCEPTABLE TO ALL

INTERESTS AND CLASSES.

(C) REFERENCE SHOULD BE MADE TO LOCAL POLITICAL SYSTEMS OF THE WEST (SIC). SINCE HK WOULD BE A LOCAL GOVERNMENT, PTS CHIEF

EXECUTIVE COULD ONLY BE APPOINTED OR REMOVED BY THE CENTRAL

GOVERNMENT. THE EXECUTIVE MUST HAVE SUFFICIENT POWER TO MAKE

DECISIONS WITHOUT BEING CONSTRAINED BY THE ENDLESS DISPUTES OF

PARTY POLITICS. THE POLITICAL SYSTEM SHOULD BE DEMOCRATIC ON MAJOR

POLICIES AND ISSUES, BUT ON DAY-TO-DAY ADMINISTRATION, THE

EXECUTIVE AUTHORITIES MUST HAVE A FREE HAND.

(D) THE FACTORS CONTRIBUTING TO HK'S SUCCESS SHOULD BE RETAINED.

THESE INCLUDE THE HIGH EFFICIENCY OF GOVERNMENT, LOW TAXATION,

PROTECTION BY LAW OF INDUSTRIAL AND COMMERCIAL OPERATIONS, THE CIVIL SERVICE SYSTEM, EMPLOYMENT OF EXPERTS, AND THE SETTING UP

OF OVER 300 CONSULTATIVE COMMITTEES. THESE SHOULD ALL BE

MAINTAINED, APART FROM THOSE LAWS AND PERSONAL ARRANGEMENTS WHICH

BEAR A COLONIAL REFERENCE.ALTHOUGH LOCAL PEOPLE MUST BE N

LEADING POSITIONS, IT WOULD BE DIFFICULT TO REPLACE ALL FOREIGN EXPERTS. POLITICAL REFORMS MUST BE BENEFICIAL TO HK'S PROSPERITY

AND STABILITY: OTHERWISE CHANGES SHOULD BE KEPT TO THE MINIMUM.

THE PRESENT CIVIL SERVICE SYSTEM MUST BE MAINTAINED, AND THE BASIC

LAW MUST HAVE REGARD TO THE VIEWS OF CIVIL SERVANTS (INCLUDING

EXPATRIATE CIVIL SERVANTS).

4. COPY OF THE ARTICLE, WITH TRANSLATION, WOULD FOLLOW BY BAG.

YOUDE

HONG KONG AGREEMENT: RESTRICTED

LIMITED

HD/HKD

HD/FED

COPIES TO:

MR FIFOOT, LEGAL ADVISERS MR WOOD LEGAL ADVISERS

RESEARCH D (FE)

DEP/HD PUSD

PS/MR RENTON MR WILSON

RESTRICTED