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8.
All the powers now the responsibility of the Governor which would not be exercised by the Chief Executive after 1997 would be retained by the Governor until 1997. The Governor's position would in some respects be similar to that of a Governor in the last (fully internally self- governing) phase before independence of a colony he would remain responsibile for defence and foreign affairs, and in the last resort for security, but day-to-day internal administration would be in the hands of the local Government. After 30 June 1997 some of the Governor's powers (e.g. in the areas of defence and foreign relations) would pass to the central people's Government : others (e.g. the powers of disallowance and the power to override the actions of the Chief Executive on the instructions of HMG) would end.
D.
9.
Method of selection
The present Chinese position is that the first Chief Executive should be chosen before 1997 by consultation, whatever the method to be used subsequently. The Chinese do not yet seem to have considered who should be consulted or how the consultation exercise should be mounted.
10.
At present the indications are that the Chinese would not agree to the selection of the first Chief Executive by election. (A major factor in their thinking must be that in practice an election would have to be conducted in Hong Kong while the territory was still under British administration). There would however be great advantage, in terms of confidence in Hong Kong, if the main features of the method of selection to be used after 1997 could be tested out in advance, for the selection of the first Chief Executive. This would assist him by ensuring that he entered office with a demonstrable degree of support from the people of Hong Kong. We should put these arguments to the Chinese in due course.
E. Candidates
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It is too early to consider what type of individual might be best suited to be the first Chief Executive of the Hong Kong SAR. Broadly speaking the choice is between a former official drawn from the Hong Kong Government service, and a non-official with a background in the Executive Council and/or the Legislative Council. The former would bring more direct experience of practical administration, the latter a high political profile. If we envisaged two terms of office for a Deputy Governor before 1997, the two incumbents need not be drawn from the same background. We have no clear picture of thinking in Peking on this point, beyond one or two indications (not necessarily reliable ones) that the Chinese may see attractions in a Chief Executive selected from among senior Government officials.
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