TNAG-2989-FCO40-3575-Future-of-Hong-Kong-constitutional-development-talks-betwee-1992 — Page 16

pa.

China angle!

UNCLASSIFIED

MWB 042/ нив

123645 MDLIAN 9126

UNCLASSIFIED

FM HONG KONG

TO PRIORITY FCO

TELNO 2810

OF 02080OZ DECEMBER 92

INFO PRIORITY PEKING, UKREP JLG HONG KONG

'VETTING BODY' ON CONTRACTS STRADDLING 1997: PRESS REPORTS.

1.

QUOTING WELL-PLACED SOURCES A LEAD ARTICLE IN THE EXPRESS TODAY (2 DECEMBER) REPORTED EXCLUSIVELY THAT THE CHINESE SIDE HAD BASICALLY DECIDED LAST EVENING TO SPEED UP THE FORMATION OF A 'SECOND POWER CENTRE' IN HONG KONG, IN VIEW OF THE GOVERNOR'S UNCOMPROMISING STANCE ON HIS POLITICAL REFORMS. THIS BODY WOULD BE TASKED WITH VETTING ALL CONTRACTS, LEASES, AGREEMENTS AND FRANCHISES STRADDLING 1997. THE AIM WAS TO UNDERMINE FURTHER THE ADMINISTRATIVE AUTHORITY OF MR.PATTEN.

2.

ACCORDING TO THE SOURCES, THE CHINESE SIDE BELIEVED THAT THE GOVERNOR WOULD MAKE NO CONCESSION BEFORE FEBRUARY 1993 WHEN THE DRAFT LEGISLATION ON THE 1995 ELECTIONS WOULD BE PUT TO LEGCO. THEY HAD THUS DECIDED THAT THE 'VETTING BODY' SHOULD BE ESTABLISHED QUICKLY AND COMMENCE WORK BEFORE FEBRUARY.

3=

THE SOURCES DISCLOSED THAT WITH NOT MORE THAN 18 MEMBERS (ALL FROM ENTREPRENEURIAL AND PROFESSIONAL FIELDS), THE VETTING BODY WOULD DELIBERATELY BE MODELLED ON THE GOVERNOR'S BUSINESS COUNCIL. THE BULK OF ITS MEMBERSHIP WOULD BE HONG KONG AFFAIRS ADVISERS. VINCENT LO WOULD HEAD THE ORGANISATION WHILE T.S.LO AND LIU YIU-CHU WOULD ALSO SERVE ON IT. WHILE THE LIST OF MEMBERS HAD YET TO BE FINALISED, SOURCES SAID IT WOULD BE INTERESTING TO SEE HOW MANY MEMBERS OF THE GOVERNOR'S BUSINESS COUNCIL WOULD BE PERSUADED TO 'DEFECT'. IF THIS RESULTED IN DISSOLUTION OR RECONSTITUTION OF THE GOVERNOR'S BUSINESS COUNCIL, IT WOULD CERTAINLY BE A BLOW TO THE GOVERNOR'S AUTHORITY.

4.

THE SOURCES ALSO SAID THAT IN VIEW OF THE POSSIBLE 'PROLONGED STRUGGLE' WITH THE GOVERNOR, THE VETTING BODY WOULD TRANSCEND 1997. IT WOULD PLAY A MONITORING ROLE, TO SCRUTINISE ON BEHALF OF THE SARG THOSE CONTRACTS, AGREEMENTS AND FRANCHISES WHICH EXTENDED BEYOND 1997, AND SUBMIT ITS RECOMMENDATIONS TO THE HONG KONG AND MACAU AFFAIRS OFFICE.

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