SECRET
XCX(93)36
and Garment, Import and Export, Maritime, Sports, Kai Fong, Chinese Enterprises Association, and Insurance. The Chinese side have further proposed that voting rights for these FCs should be on the basis of "one corporation one vote".
5
We have told the Chinese that once we know the full Chinese position, we will be positive and constructive in seeking to move to an overall agreement. We have also told the Chinese that FCs would continue to represent economic and professional sectors which are substantial and of importance to the community. At the same time, we have stressed that corporate voting, which gives rise to the undesirable phenomenon of one person controlling many votes, and over-narrow franchise (which gives rise to opportunities for corruption) should be abolished.
Parameters
6
We now need to consider possible new FCs which our negotiators can put forward at the next round of talks, to begin the process of negotiations. In identifying possible candidates, our starting point is the parameters laid down by this Council on 1 June 1993, and subsequently accepted by HMG, viz. that -
(a) we should stick to our proposals for a modest expansion
of the existing FCs; and
(b)
if we had to move from our position on the 9 new FCs, we should insist that the alternatives are still substantial, broadly-based and acceptable to the Hong Kong people.
Fulfillment of these parameters is the key to a credible FC system, producing fair and open elections and minimizing corruption opportunities.
7
Within the parameters set out in paragraph 6 above, we propose also to take account of the Chinese views on FCs as follows -
(a)
that we should try to meet the theoretical objections which the Chinese side have against our original nine proposed new FCs, viz. that they are not "organization-based" and that, as such, they are a form of direct elections in a roundabout way. (The latter objection is of course unfounded under our original
Executive Council
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