TNAG-2453-FCO40-3571-Seminar-regarding-Hong-Kong-matters-hosted-by-Douglas-Hurd---1992 — Page 67

CONFIDENTIAL

5. The unofficial members of EXCO, led by Baroness Dunn,

are uncomfortable (and ineffective) at defending to their

LegCo colleagues controversial EXCO decisions, particularly

when the EXCO members themselves have been pushed into a

decision by the Administration (eg. the Court of Final

Appeal CFA).

6.

The CFA decision brought these tensions to a head and

illustrated the problems we will continue to face in

securing support in Hong Kong for JLG decisions:

the confidentiality requirements of the JLG make it

difficult to prepare LegCo opinion for impending JLG

announcements;

7.

Hong Kong politicians therefore tend to see not how far

we have pushed the Chinese, but how far we ourselves have

been pushed;

since our JLG team is led by a British diplomat (albeit

with HKG support) the JLG is seen as a group with no

accountability in Hong Kong, taking decisions directly

affecting Hong Kong's way of life.

The

Problems with LegCo should not be overstated.

Administration suffered a high-profile reverse on the CFA,

and are having to work a lot harder to justify their

budgetary requests. There has been much squabbling about

how LegCo should organise its work (temporarily resolved in

favour of minimum change: a relief for the Chinese, but

inefficiency will continue).

8.

But business is getting done: the new LegCo Finance

Committee have approved 99% of the funds sought by the

Administration so far; and proposals to import more labour

were accepted in the face of strong union opposition.

FIZABP/2

CONFIDENTIAL