TNAG-1443-FCO40-1927-Constitutional-development-in-Hong-Kong-1986 — Page 212

The Nature Of The Problem

SECRET

2.

At present the administration of Hong Kong is the responsibility

of the Governor of Hong Kong, appointed by The Queen. Ministers

have adopted the planning assumption that a resident British

Governor, appointed from London, should be retained up to 1997.

3. From 1 July 1997, under the provisions of the Joint Declaration,

a Chief Executive will be appointed for the Hong Kong SAR. He will

be a local inhabitant, selected by election or consultation.

4. The present powers of the Governor and the future powers of the

Chief Executive will not be identical. At present, although in

practice Hong Kong already exercises a high degree of autonomy, the Governor is constitutionally subject to the directions of HMG. Under the Joint Declaration the Hong Kong SAR will also enjoy a high degree of autonomy (except in foreign and defence affairs). However

the powers and responsibilities of the Chief Executive have yet to

be defined by the Chinese Government in the Basic Law of the Hong Kong SAR. The Chinese seem to envisage that he will not exercise

all the powers over the internal administration which, on paper if not in practice, the Governor at present enjoys.

5.

Chinese drafting of the Basic Law for the Hong Kong SAR is

already under way, and a first draft will be published in 1988. We

need to exert all the influence we can on the drafting of the Basic

Law so as to ensure that it corresponds to Hong Kong's needs and that there is compatibility in arrangements for the transition

period up to 1997.

The Options

6. In general terms there are two possible courses of action:

Option (A) The powers and the role of the Governor would

remain as they are now until 30 June 1997. A Chief Executive

would then take over.

SECRET

-2-