TNAG-1580-FCO40-2154-Extension-to-Hong-Kong-of-European-Community--European-Free-1987 — Page 4

Government has exercised this power. English common law and the

rules of equity are in force in Hong Kong, extended and modified

as necessary by local legislation.

Council (known as

1.4 The Governor is advised by an Executive

Executive Council

"EXCO") which currently consists of 16 members:

(a)

(b)

4 ex-officio members (the Chief Secretary, the Commander British Forces, the Financial Secretary and the Attorney General); and

12 other members appointed by the Governor, of whom 2 are Official (ie, members of the Hong Kong Government)

and 10 are Unofficial.

The Governor is required to consult EXCO on all major issues of public policy. He is not obliged to accept the advice he receives, but if he does not he must report his reasons to HMG.

1.5 The Governor legislates with the advice and consent of the Legislative Council (known as "LEGCO") which has recently been enlarged to comprise 56 members apart from the Governor himself:

(a) 3 ex-officio members (the Chief Secretary, the

Financial Secretary and the Attorney General);

(b) 7 Official members nominated by the Governor;

(c) 46

Unofficial members (22 nominated by the Governor and 24 indirectly elected).

The Finance Committee of LEGCO, on which all Unofficial members sit, considers all proposals involving expenditure from public funds. A Public Accounts Committee considers the annual report of the Director of Audit and reports to the Governor.

1.6 By taking part in the process of government, the Members of the Executive and Legislative Councils play a significant role in the administration of Hong Kong. They advise on the formulation

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