CONFIDENTIAL
FM FCO
TO PRIORITY HONG KONG
TELNO 986
OF 081225Z MAY 89
CONFIDENTIAL
101
052404
HKB 012/1
MDLOAN 8495
ероч
INFO PRIORITY PEKING, UKREP JLG HONG KONG
(95)
96
98
YOUR TELNOS 1331, 1359-60 AND 1366: BASIC LAW: VISIT OF MAINLAND DRAFTERS
1. WE HAVE BEEN STUDYING CAREFULLY YOUR DETAILED ACCOUNTS OF THESE DISCUSSIONS. THESE HAVE BEEN MOST USEFUL EXCHANGES. WE
ARE ENCOURAGED BY THE APPARENT WILLINGNESS OF THE DRAFTERS TO GO
AS FAR AS THEY CAN TO MEET CONTINUING CONCERNS IN HONG KONG. 2. ON ARTICLE 157 (PARA 9 OF FIRST TUR AND PARAS 9 AND 20 OF SECOND TUR), YOU WILL BE AWARE OF OUR VIEW THAT ULTIMATELY THE NPC DOES HAVE THE RIGHT TO INTERPRET (NEXT WORD UNDERLINED) ALL PROVISIONS OF THE BASIC LAW. WE VERY MUCH DOUBT THAT THE CHINESE WILL BE PREPARED TO GO AS FAR AS EXPLICITLY LIMITING THE POWER OF INTERPRETATION OF THE NON-AUTONOMY ARTICLES TO THE SAR COURTS, AT LEAST PUBLICLY. IT SEEMS TO US THAT THEIR NATURAL INSTINCT WILL BE TO RETAIN A LONG-STOP ROLE FOR THE NPC STANDING COMMITTEE FOR FEAR THAT THE COURTS MIGHT MAKE A QUOTE WRONG MOVE UNQUOTE IN CHINESE EYES. AT THE END OF THE DAY, WE IMAGINE WE WILL HAVE TO RELY ON PRIVATE ASSURANCES THAT THE STANDING COMMITTEE WILL HAVE NEITHER THE CAPACITY NOR THE INCLINATION TO INTERFERE IN CASES INVOLVING THE AUTONOMY PROVISIONS. BUT WE ARE
CONTENT THAT YOU SHOULD CONTINUE TO PRESS THE CHINESE ON THIS POINT.
3.
WE HAVE NOTED REFERENCES IN THE PRESS TO LU PING'S STATEMENT THAT CHINA WOULD LEGISLATE AGAINST MALPRACTICES BY MAINLAND-OPERATED FIRMS IN HONG KONG. WE WOULD BE INTERESTED TO CLARIFY WHAT HE HAS IN MIND. WOULD THIS BECOME A NATIONAL LAW APPLIED TO HONG KONG? ARTICLE 22 OF THE BASIC LAW ALREADY PROVIDES THAT MAINLAND OFFICES IN HONG KONG SHOULD BE SUBJECT TO
HONG KONG LAWS. IT SEEMS TO US THAT THAT SHOULD BE SUFFICIENT. GRATEFUL FOR ANY FURTHER INFORMATION YOU HAVE ON THIS SUBJECT, AND YOUR ASSESSMENT OF LU'S COMMENTS. DID HE PERHAPS HAVE IN MIND SOME SORT OF ADMINISTRATIVE CONTROL FROM PEKING OF PRC FIRMS IN HONG KONG, RATHER THAN NEW LEGISLATION?
4.
WE SHALL BE COMMENTING SEPARATELY ON YOUR EXCHANGES ON THE FUTURE POLITICAL STRUCTURE.
PAGE 1 CONFIDENTIAL
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