SECRET
XCX(93)36
Justifications for these 12 FCs are set out in paragraphs 11 - 22 below. Detailed composition of these 12 FCs is at Annex A. Voting in these new constituencies will be by individuals rather than by corporate bodies, on the same line as we propose for the existing FCs.
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(a)
(b)
(c)
The main features of the proposals are
they are all substantial and broadly based, and are thus credible;
they take account of the Chinese concern [see paragraph 7(a) above] that the FCs should be "organization-based", i.e. delineation is by reference. to associations/trade unions/professional lists, while at the same time maintaining our position that the vote should be given to individuals rather than corporate bodies; and
they have built on seven out of the nine sectors proposed by the Chinese. (The two exceptions are a “Chinese Enterprises Association" FC and an "Insurance" FC. Chinese enterprises in Hong Kong can freely join any of the existing economic FCs, and we do not believe it is appropriate to create an FC on a “national" basis. As for Insurance, it is now part of the Financial Services FC which has an eligible electorate of only about 1 000. Splitting Insurance from it would therefore create two even smaller FCs. For detailed arguments, please see Annex B.)
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The 12 proposed FCs, plus the existing FCs with expanded franchise (as a result of replacing corporate voting by individual voting), will have between them a total potential electorate of about 1.05 million. This electorate size is 1.65 million (or 61%) smaller than that originally envisaged in our original constitutional package (2.7 million voters). This will lay us open to criticisms from liberal opinion in the Legislative Council and the community, and overseas. However, we can argue that an electorate of over 1 million is still sizable and should meet our objective of substantial and credible constituencies.
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