TNAG-2733-FCO40-3939-Future-of-Hong-Kong-constitutional-development-1993 — Page 124

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FM HONG KONG

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HKB 012/1

RECE

TO DESKBY 2012OOZ FCO

TELNO 1188

OF 2011OOZ JULY 93

INFO DESKBY 20233OZ PEKING

INFO IMMEDIATE UKREP JLG HONG KONG

ISTRY

323

pa. Con Sept(((en)

072143

MDHIAN 9438.

TOP CUPY Q DIST?

128

EXCO 20 JULY: CONSTITUTIONAL DEVELOPMENT: FUNCTIONAL

CONSTITUENCIES.

SUMMARY.

1.

PAPER ON FUNCTIONAL CONSTITUENCIES (FC'S) NOT (NOT) APPROVED BECAUSE OF CONCERNS ABOUT VIABILITY OF PROPOSAL TO ABOLISH MUNICIPAL COUNCIL (MC) AND RURAL FC'S. EXCO TO DISCUSS FURTHER ON 27 JULY, CONTRASTING CURRENT PROPOSALS WITH OTHER OPTIONS IN WHICH MC'S AND HEUNG YEE KUK (HYK) RETAIN SOME OR ALL OF THEIR FC SEATS. A VOCAL MINORITY OF MEMBERS ALSO CONCERNED THAT TRADE UNION-BASED FC'S MIGHT STIMULATE GROWTH IN UNION POWER. BUT DISCRETION GIVEN TO

SIR. R MCLAREN TO TELL THE CHINESE AT THE 8TH ROUND THAT WE ARE PREPARED TO EXAMINE PROPOSALS FOR NEW FC'S BASED ON ORGANISATIONS.

DETAIL.

2.

·

INTRODUCING THE EXCO PAPER ON FC'S (EMBODYING THE PROPOSALS DESCRIBED IN PARA 29 36 OF EHRMAN'S TELELETTER TO RICKETTS, HKD OF 14 JULY I SAID THAT THE CONSTRUCTION OF FC'S WAS INHERENTLY DIFFICULT AND COMPLEX. WE NEEDED TO ENSURE THAT OUR NEW PROPOSALS WOULD BE ACCEPTABLE TO THE COMMUNITY. ORGANISATION-BASED FC'S NEEDED ABOVE ALL TO BE SUBSTANTIAL IN SIZE. WE ALSO NEEDED TO BUILD IN ROOM FOR MANOEUVRE IN THE LATER STAGES OF THE NEGOTIATIONS.

3

THE CHIEF SECRETARY SAID THAT THE NEW PROPOSALS CONTAINED TWO MAJOR CONCESSIONS: MOVING TO ORGANISATION-BASED FC'S, AND REDUCING THE SIZE OF THE FC ELECTORATE BY OVER 60 PERCENT. WE SHOULD MAKE SURE THAT THE CHINESE APPRECIATED THE EXTENT OF THESE CONCESSIONS. THE NEW PROPOSALS REPRESENTED THE MOST CREDIBLE AND BALANCED WAY OF BUILDING ORGANISATION-BASED FC'S THE ABOLITION OF MC AND RURAL FUNCTIONALS WOULD BE CONTROVERSIAL, BUT THEY WERE SMALL, DEMONSTRABLY OPEN TO CORRUPTION, NON-ECONOMIC, AND FITTED MORE NATURALLY INTO THE 4TH SECTOR OF THE ELECTORAL COMMITTEE (EC).

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