TNAG-2103-FCO40-2995-Future-of-Hong-Kong-exchanges-with-the-Chinese-on-the-Basic--1990 — Page 135

CONFIDENTIAL

161655 MDHIAN 7731

A NONSENSE AND WAS PRESUMABLY NOT/NOT INTENDED SINCE THIS AMENDMENT SEEMS TO BE INCONSISTENT WITH JD 159, WE NEED TO CONSIDER TAKING IT UP URGENTLY WITH THE CHINESE. WE ARE TELEGRAPHING SEPARATELY ON THIS POINT.

(6) ART. 36. INSIGNIFICANT, SINCE THIS DOES NOT REQUIRE THE PROVISION OF RETIREMENT SECURITY, BUT ONLY ITS PROTECTION.

(7) ARTICLES 44, 61, PARA. 2 OF ART. 55, PARA. 2 OF ART 70, PARA.1 OF ART. 89 AND PARA. 1 OF ART. 100. WE ARE ASSESSING THE PRACTICAL EFFECTS OF THESE NATIONALITY AND RIGHT OF ABODE RESTRICTIONS.

(8) ART. 45, PARA. 2. UNWELCOME, IN THAT THE INTRODUCTION OF A NOMINATION COMMITTEE COULD RENDER THE SELECTION OF THE CE LESS DEMOCRATIC AND MORE VULNERABLE TO MANIPULATION.

(9) ART. 48(5) AND PARA. 1 OF ART. 100. ''COMMISSIONER OF IMMIGRATION AND INSPECTOR GENERAL OF CUSTOMS AND EXCISE'' WERE INCLUDED IN ART. 100 OF THE FIRST DRAFT BL, BUT WERE SUBSEQUENTLY DELETED. THE CHINESE REACTION TO THE UK NATIONALITY PACKAGE HAS NOW BROUGHT THEM BACK IN.

(10) ART. 62(6). USEFUL AMENDMENT, PROBABLY MADE AS A RESULT OF LOBBYING BY OUR INTERLOCUTORS. WE ARE INCLINED TO AGREE WITH FIFOOT'S VIEW THAT WE CAN REST CONTENT WITH THIS CHANGE.

(11) ART. 63. WELCOME, IN THAT THE LATTER HALF NOW BETTER REFLECTS JD 69. HOWEVER, SOME LOCAL LAWYERS HAVE EXPRESSED CONCERN THAT A ''DEPARTMENT OF JUSTICE'' WOULD PRECLUDE THE POSSIBILITY OF A PROSECUTION AUTHORITY BEING SET UP SEPARATE FROM THE ATTORNEY GENERAL'S CHAMBERS.

(12) NEW ARTICLE AFTER ART. 66. THE NEW REQUIREMENT THAT NO MORE THAN 20 PERCENT OF LEGCO MEMBERS CAN HAVE FOREIGN NATIONALITY/RIGHT OF ABODE WILL CREATE SERIOUS PRACTICAL DIFFICULTIES. WE SHALL NEED TO TAKE THIS UP WITH THE CHINESE IN THE CONTEXT OF THE 1995 ELECTIONS. THE DRAFTERS SEEM TO HAVE GIVEN NO THOUGHT TO HOW THE PRACTICAL PROBLEMS MIGHT BE DEALT WITH.

(13) ART. 67. PARA. 3 AN AMENDMENT TO ALLOW FOR SEPARATE VOTE- COUNTING.

(14) ART. 71 THE NEW SUB-CLAUSE IS USEFUL AND IS PROBABLY A RESULT OF OUR INTERLOCUTORS' EFFORTS. SEE LAST COMMENT ON (10) ABOVE.

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