TNAG-2733-FCO40-3939-Future-of-Hong-Kong-constitutional-development-1993 — Page 126

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12. SUMMING UP AFTER FURTHER DISCUSSION OF THE MC AND RURAL

FUNCTIONALS, I CONCLUDED THAT A SLIGHT MAJORITY HAD SERIOUS RESERVATIONS ABOUT ABOLITION. WE WOULD PREPARE A NEW PAPER FOR EXCO TO DISCUSS ON 27 JULY WHICH WOULD SET THE CURRENT PROPOSALS ALONGSIDE TWO ALTERNATIVE PACKAGES. ONE OF THESE WOULD RETAIN IN FULL THE EXISTING MC AND RURAL FUNCTIONALS, BY CONDENSING OUR PROPOSED 12 FC'S INTO 9 NEW FC'S. THE OTHER WOULD REDUCE THE MC AND RURAL FUNCTIONAL SEATS WITHOUT ENTIRELY ABOLISHING THEM, REQUIRING A LESS RADICAL RE-PACKAGING OF THE REMAINING FC'S.

13. ON THE POINTS MADE BY MEMBERS ABOUT TRADE UNIONS, I SAID THAT OUR PROPOSALS FOLLOWED INEXORABLY FROM THE CHINESE INSISTENCE ON ORGANISATION-BASED FC'S. THE REALITY WAS THAT IT WAS IMPOSSIBLE TO COME UP WITH CREDIBLE AND BALANCED PROPOSALS WITHOUT INCLUDING SOME FC'S WHICH WERE UNION-BASED. MERGERS WERE NOT A SOLUTION, BECAUSE THE RESULT OF ANY MERGERS BETWEEN UNION-BASED AND PROFESSIONAL OR EMPLOYER-BASED FC'S WOULD INEVITABLY BE LABOUR DOMINATED. A BALANCED PACKAGE REQUIRED DISTINCT FC'S FOR EMPLOYERS,

PROFESSIONALS AND UNIONS.

14. I ALSO CONCLUDED THAT ALTHOUGH THE PRECISE COMPOSITION OF OUR NEW PROPOSALS ON FC'S WOULD REQUIRE FURTHER DISCUSSION ON 27 JULY, THERE SEEMED TO BE CONSENSUS IN FAVOUR OF GIVING SIR R MCLAREN DISCRETION TO TELL THE CHINESE DURING THE 8TH ROUND THAT WE WERE PREPARED TO EXAMINE ORGANISATION-BASED FC'S, PROVIDED THESE WERE SUBSTANTIAL IN SIZE, THAT THEY REPRESENTED ECONOMIC AND

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