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OVERRULE THE PROPOSAL ON SEPARATE VOTE COUNTING.

12. BOTH MEETING POINT AND THE MODERATES TOOK HK DRAFTERS TO TASK, POINTING OUT THE LATTER'S OWN PROPOSALS WERE EVEN MORE CONSERVATIVE THAT THE MAINSTREAM MODEL.

DIRECTORS' MEETING

13. THE BLDC DIRECTOR, DEPUTY DIRECTORS AND CO-CONVENORS ARE MEETING IN GUANGZHOU ON 22-24 JANUARY. ON HIS ARRIVAL YESTERDAY, PENGFEI DECLINED TO COMMENT ON THE LATEST POLITICAL PROPOSALS. HK DEPUTY DIRECTORS T.K. ANN AND DAVID LI SAID THEY WOULD RESERVE THEIR COMMENTS UNTIL THEY HAD STUDIED THE PROPOSALS IN DETAIL. IT WAS REPORTED THAT ANOTHER HK DEPUTY DIRECTOR, SIR Y.K. PAO WOULD NOT ATTEND THE MEETING.

JI

14. THE HK ECONOMIC JOURNAL BELIEVED THAT THE DIRECTORS' MEETING WOULD MAKE A STRONGER PLEA FOR CONVERGENCE. IF THE BRITISH ACCEPTED THE PRINCIPLE OF CONVERGENCE, IT SHOULD NOT BE DIFFICULT FOR THE NUMBER OF DIRECTLY ELECTED SEATS IN 1997 TO BE INCREASED BY TWO, THE PAPER ADDED.

WILSON

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ΜΑΙΝ

59

DISTRIBUTION

63

.HONG KONG AGREEMENT

.(RESTRICTED)

LIMITED

HKD

HD/FED

RESEARCH (FE)

PUSD

NEWS D

PS/MR MAUDE

PS/LORD BRABAZON

MR GILLMORE

MR MCLAREN

MR BLATHERWICK

MR MOSS

ADDITIONAL

4

MR WHOMERSLEY LEGAL ADV

MS BARRETT LEGAL ADV

MR FIFOOT HKD

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HONG KONG GOVERNMENT OFFICE (LONDON)

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