TNAG-1469-FCO40-1998-Visits-by-members-of-the-Office-of-the-Unofficial-Members-of-1986 — Page 58

CONFIDENTIAL

through the hand-over.

The

Governor

observed that in the PRC's

view, the Chief Executive would be the PRC representative in Hong

Kong as well as the administrator of the SAR and its ceremonial

head. The PRC could appoint anyone they liked

anyone they liked from 1 July 1987. They could even appoint whomever they liked before that, and have

him waiting in the wings. We must oppose that, and insist that a

Chief Executive must be chosen before 1997 in such a way that he

would have the confidence of the PRC, HMG and Hong Kong people. Otherwise the transition simply would not work. Dr Wilson said that

there would also be advantage in setting up the institution of Chief

Executive in advance so that the Hong Kong administration could get

used to dealing with that institution.

The Defence Costs Agreement

27.

Miss Dunn

would be

said that the renegotiation of the DCA in 1987

controversial.

LEGCO was becoming a more lively

institution, and the financial committee was flexing its muscles.

We should note that the Joint Declaration had laid down that the PRC

would provide defence for Hong Kong after 1997 without making any

charge on Hong Kong people for this.

CONFIDENTIAL