TNAG-2103-FCO40-2995-Future-of-Hong-Kong-exchanges-with-the-Chinese-on-the-Basic--1990 — Page 50

CONFIDENTIAL

CONFIDENTIAL

FM FCO

TO DESKBY 03010OZ HONG KONG TELNO 487

OF 02183OZ MARCH 90

HKC012/3

RECEIVED IN REGISTRY

~

**SK OFFICER

PA

1990

REGISTRY

Action Taken

INFO PRIORITY PEKING, UKREP JLG HONG KONG

33

022411

MDHOAN 4312

TOP COPY Q DIST ?

YOUR TELNO 795 AND 796: BASIC LAW: ARTICLE 106

1.

WE ACCEPT THAT THE CHANGES IN PARA 3 OF SECOND TUR ARE AN IMPROVEMENT ON THE 1989 TEXT. HOWEVER THEY DO NOT SOLVE OUR PROBLEM. WE ARE NOT (NOT) SATISFIED THAT THEY MAKE THE ARTICLE A MERE GUIDELINE AND THAT JUSTICIABLE ISSUES WOULD NOT ARISE.

2.

FURTHER, WE WOULD NOT WISH TO GIVE THE CHINESE THE IMPRESSION THAT IF THEY AMENDED THE ENGLISH TEXT AS IN PARA 3 OF SECOND TUR, WE WOULD BE ABLE TO SAY TO ANY CRITIC THAT WE DO NOT BELIEVE THAT ANY QUESTION OF INCONSISTENCY WAS RAISED BY ARTICLE 106. WE ARE WELL AWARE OF THE FIRST SENTENCE OF PARA 3 OF FIRST TUR, BUT WE SERIOUSLY DOUBT WHETHER THERE IS SUFFICIENT IN THE QUOTE BROADER INTERPRETATION UNQUOTE TO GIVE THE IMPRESSION THAT IT WOULD SATISFY US. FOR OUR PART WE WOULD NOT INCLUDE PARA 3 OF SECOND

TUR.

HURD

YYYY

DISTRIBUTION

59

ΜΑΙΝ

56

.HONG KONG AGREEMENT

.(RESTRICTED)

LIMITED

HKD

HD/FED

RESEARCH (FE)

PUSD NEWS D

PS/MR MAUDE

PS/LORD BRABAZON

MR GILLMORE

MR MCLAREN

ADDITIONAL

3

MR WHOMERSLEY LEGAL ADVISERS MR SARRETT LEGAL ADVISERS

NNNN

MR FIFOOT LEGAL ADVISERS

PAGE CONFIDENTIAL

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