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Consequential issues

18.

A number of consequential issues are examined in the

annex to this paper. Ministers will wish to note the

implications of what is proposed: but these do not require ministerial decision at this stage. Such decisions could only

be taken once the general concept has been explained to the

Chinese and they have been drawn into discussion of their own

intentions for the period immediately after 1997.

19.

Our objectives in these areas might be the following:

(i)

(ii)

the post of Deputy Governor might be created in 1992. A second term of office would span the

change of sovereignty in 1997 (Annex paras 1 2);

K

an individual acceptable to ourselves and the

Chinese, and if possible selected by the same process as would be used after 1997, would occupy the post of Deputy Governor, perhaps in 1995, and become Chief Executive on 1 July 1997 (Annex para 3);

(iii) powers would be progessively devolved to the

incumbents of the post, although ultimate authority would remain with HMG in accordance

with the provisions of the Joint Declaration (Annex paras 4 - 6);

(iv) by 30 June 1997 the Chief Executive (designate)

should exercise all the powers which he would

exercise when the Hong Kong SAR came into being. The remaining powers would be retained by the Governor (Annex paras 7 - 8);