ANSON CHAN FORMS CORE GROUP, AGAIN DECLINES TO

UNCLAS HONG KONG 002950 SIPDIS SENSITIVE SIPDIS DEPARTMENT FOR EAP AND EAP/CM NSC FOR DENNIS WILDER E.O. 12958: N/A TAGS: PGOV PREL PHUM PINR CH HK SUBJECT: ANSON CHAN FORMS CORE GROUP, AGAIN DECLINES TO ANNOUNCE ELECTION PLANS ¶1. (SBU) Summary: In a July 19 speech, former Hong Kong Chief Secretary Anson Chan once again declined to say whether she would enter the 2007 Chief Executive election. Instead, she discussed the Basic Law's provision of a legal basis for universal suffrage and criticized attempts to establish new pre-conditions for its extension. She said opponents of democratization needed to change their positions, while the pro-democracy groups had to address concerns that a democratically-elected government would be "anti-business" and endanger the city's prosperity and stability through excessive social welfare. She also noted the "difficult to dispel" concern that a democratically elected government would be more likely to challenge the authority of the Central Government. Chan said she was forming a "core group" to "formulate more concrete proposals and map out a strategy on the way forward." End Summary. ¶2. (SBU) On July 19, retired former Hong Kong Chief Secretary Anson Chan once again declined to announce -- or to rule out -- her intention to contest the 2007 Chief Executive election. In a speech at the Foreign Correspondents' Club, Chan said she had no intention to confront either the Hong Kong Administration or the Central Government, and also that she had "no personal agenda" and was not "hungry for power." That said, however, she observed that she felt "duty bound to practice what I preach." She briefly reviewed Hong Kong's recent history, including the drafting of the Basic Law and the "too little, too late" steps taken by the British colonial administration to expand democratization. She went into some detail on key provisions of the Basic Law that, she believed, "enshrine the concept that truly democratic governments cannot exist other than on the basis of universal suffrage." She particularly noted that "universal and equal suffrage" was not interchangeable with the idea of some sort of "engineered balanced representation" as a justification for retaining Hong Kong's Functional Constituencies indefinitely. ¶3. (SBU) Chan criticized attempts by "certain quarters" to establish new pre-conditions for universal suffrage -- "placing ever more hurdles along the track." She said Hong Kong's business community and other sectors "who feel they have a vested interest in fending off democracy for as long as possible" needed to change their positions. At the same time, the pro-democracy groups would have to address some of the popular "myths and concerns" that a democratically-elected government would be "anti-business" and endanger the city's prosperity and stability through excessive social welfare. She also noted another concern, which she described as "misplaced" but difficult to dispel: that a democratically elected government would be more likely to challenge the authority of the Central Government. Chan criticized the constitutional reform package proposed by Chief Executive Tsang and blocked by the Legco democrats in late-2005, which she said would have done no more than "tinker with" the electoral arrangements for the 2007 and 2008 elections. She specifically faulted that proposal's lack of a timetable and roadmap for democratization, as well as its failure to address the role of the Functional Constituencies. She also noted the need for a firmer legal foundation for the role of political parties in the Hong Kong system. In conclusion, Chan said there was "much work to be done and I would like to play whatever part I usefully can." She said she was forming a "core group" to "formulate more concrete proposals and map out a strategy on the way forward." She concluded that she intends to "play an active role and you can expect to hear more from me on this issue in the months and years ahead." ¶4. (SBU) Immediately following her speech, Chan took questions from the audience and then met with the large press contingent. As expected, the first audience question was whether she would enter the 2007 Chief Executive race; she replied that she would choose a time and place to announce whether she was standing or not standing. Similarly, at the press briefing Chan said in Cantonese that she would announce her decision at "an appropriate time." She also elaborated on her formation of a core group, which would include 8-10 people with two primary objectives: to address public concerns over political reform, and to present a package of workable reform proposals to the Commission on Strategic Development. Sakaue