TNAG-2730-FCO40-3936-Future-of-Hong-Kong-constitutional-development-1993 — Page 95

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DESKBY

support for the Governor has held up reasonably well (by a margin of about 2:1), although there has been some decline in the absolute level of support

In the business community, the Chinse have succeeded in creating widespread opposition to the Governor's proposals, and in driving down the stock market the uncertainties may discourage investors until the prospects are clearer and the

property market may weaken. But the economic fundamentals

have not yet been affected.

3.

In the Legislative Council (LegCo), there has so far been a comfortable majority in support of the Governor's proposals

with roughly 30 (out of a total of 60 members) in favour, 20

opposed and 10 undecided. The last category seems to be

growing, with an increasing number of the middle ground Looking for a compromise. Any compromise would however be denounced by the 14 Leg Co members of Martin Lee's United Democrats, who are watching carefully for any sign of

backsliding by the Governor or HMG. Some LegCo members have already put forward alternative proposals on parts of the electoral package. Others are intending to do so. These will be considered by Leg Co alongside the Governor's proposals, which will be introduced in February. The process

in LegCo could take several months.

Internationally, the proposals have strong support in the US, Canada and Australia and (in private) from Japan and some EC

partners.

In the UK there was some adverse comment in the recent

Lords Debate. But there has been no serious challenge to the

Government's policy from Westminster or the media.

4.