TNAG-2471-FCO40-3595-Confidential-talks-between-the-UK-and-China-regarding-financ-1992 — Page 129

CONFIDENTIAL

there is to be any encroachment on the powers of LegCo over Hong Kong revenue it would be right for Parliament to take the responsibility. I agree that this would be a

heavy-weight and cumbersome means of legislating and would provide a platform for more political debate. This may help deter the Treasury from pursuing their ideas.

5. I am minuting separately to you with a copy of a draft paper on the HMOCS issue, which we have been discussing with the Treasury and ODA. You will note that para 13 mentions the point about which we have been minuting here.

6. The points in para 5 of your mintue are also very

helpful. We are thinking again about the possiblity of amending the Letters Patent to give the Governor some general reserve powers over finance. If this seems politically feasible we shall need to seek your advice again (but as a first step we are looking out Mr Fifoot's minuting on the subject).

Mos

•

N J Cox

Perkings 1

Could make

f

thin the Choren

Mrr Cox HKD

& TH Chamberlam.

Your paraplaph 2. I read the proposed new porrer as meaning

that the Gove

mer mom

direct

payment of the smm

не

the connder he censory / deerns fit, subject to the Senetory of Staley Cpproval. But perhaps it would be best to got motead for a provision whereby the Govenor must

gotron.

53

m

direct

payment of a

enter Royal Instructions. I am not greatly attracted

smm spenfid MAXAKX/2 to the Suggestion of a prowmon with two alternative, I will reflect fitter!"

CONFIDENTIAL

S Brocks 2412

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