MORE POLITICAL APPOINTEES FOR HONG KONG GOVERNMENT?

C O N F I D E N T I A L HONG KONG 003054

SIPDIS

NOFORN
SIPDIS

DEPARTMENT FOR EAP AND EAP/CM
NSC FOR DENNIS WILDER



E.O. 12958: DECL: 07/27/2031
TAGS: PGOV PREL PINR CH HK
SUBJECT: MORE POLITICAL APPOINTEES FOR HONG KONG GOVERNMENT?

CLASSIFIED BY: ECONOMIC/POLITICAL SECTION ACTING CHIEF JEFF ZAISER; REA
SONS 1.4 (B, D)


1. (C) SUMMARY: ON JULY 26, THE HONG KONG GOVERNMENT (HKG)
RELEASED A PROPOSAL TO SIGNIFICANTLY INCREASE THE NUMBER OF
POLITICAL APPOINTMENTS TO HIGH-RANKING POSITIONS. THE PLAN,
PART OF CHIEF EXECUTIVE (CE) DONALD TSANG'S INITIATIVE FOR
STRONG GOVERNANCE, IS INTENDED TO STRENGTHEN SUPPORT FOR
MINISTERS AS THEY UNDERTAKE POLITICAL WORK AND ALSO TO
PROVIDE ANOTHER CAREER PATH FOR PEOPLE INTERESTED IN CAREERS
IN POLITICS. WHILE ASSERTING THAT ANY NEW APPOINTEES WOULD
NEED TO ENDORSE THE CES POLITICAL PHILOSOPHY AND PROGRAM,
SECRETARY FOR CONSTITUTIONAL AFFAIRS STEPHEN LAM REJECTED

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CLAIMS THAT A LARGE MAJORITY OF THE APPOINTEES WOULD BE DRAWN
FROM PRO-GOVERNMENT POLITICAL PARTIES. BOTH THE PRO-BUSINESS
LIBERAL PARTY (LP) AND THE PRO-BEIJING DEMOCRATIC ALLIANCE
FOR THE BETTERMENT AND PROGRESS OF HONG KONG (DAB) REACTED
POSITIVELY TO THE PROPOSAL, WHILE THE PRO-DEMOCRACY PARTIES
SAID IT WOULD FURTHER INHIBIT THE DEVELOPMENT OF DEMOCRACY.
ONE CIVIC PARTY MEMBER, A POLITICAL SCIENCE PROFESSOR, SAID
THE PLAN WAS "REASONABLE" IN SOME RESPECTS, BUT HE DOUBTED
WHETHER ANY MEMBERS OF THE DEMOCRATIC PARTIES WOULD ACCEPT
APPOINTMENTS. EXECUTIVE COUNCIL MEMBER ANTHONY CHEUNG TOLD
US THAT THE PAN-DEMOCRATS WOULD FACE A DILEMMA IF TSANG
OFFERED THEM POSITIONS: ACCEPTANCE WOULD ADD LEGITIMACY TO
THE TSANG ADMINISTRATION, WHILE REFUSAL WOULD BRING
ACCUSATIONS THAT THEY WERE ONLY INTERESTED IN BLOCKING
TSANGS EFFORTS TO IMPROVE GOVERNANCE.

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2. (C) COMMENT: MANY OF HONG KONGS MOST PROMINENT
PRO-DEMOCRACY LEADERS VIEW THE PROPOSAL CYNICALLY AS ANOTHER
ATTEMPT BY DONALD TSANG TO STRENGTHEN HIS CE OFFICE. THEY
ALSO SEE IT AS A "TRAINING PROGRAM" FOR TSANG'S PRIMARY
POLITICAL PARTY ALLY, THE DAB. THE GOVERNMENT DID NOTHING TO
DAMPEN THOSE DOUBTS WHEN LAM OBSERVED THAT THE NEW APPOINTEES
WOULD NEED TO SHARE THE VISIONS AND IDEAS OF THE CE. BY
OPENING A FOUR-MONTH CONSULTATION PERIOD, THEN DEFERRING
FURTHER ACTION UNTIL AFTER THE 2007 CHIEF EXECUTIVE ELECTION
-- ESSENTIALLY COPYING THE GOVERNMENT'S STRATEGY FOR POSSIBLE
INTRODUCTION OF A NEW GENERAL SERVICES TAX (GST) -- TSANG
SHOULD BE ABLE TO POINT TO THE PROPOSAL AS A POSITIVE MOVE
FROM HIS ADMINISTRATION WHILE AVOIDING MUCH NEGATIVE PUBLIC
REACTION. END SUMMARY AND COMMENT.

MORE JOBS FOR POLITICAL APPOINTEES
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3. (SBU) ON JULY 26, THE HKG RELEASED A "CONSULTATION
DOCUMENT" ENTITLED "FURTHER DEVELOPMENT OF THE POLITICAL
APPOINTMENT SYSTEM." IF IMPLEMENTED, THE PROPOSAL WOULD
SIGNIFICANTLY EXPAND THE NUMBER AND DEPTH OF POLITICAL
APPOINTMENTS TO HIGH-RANKING POSITIONS. THE PROPOSAL WAS
SUBMITTED ON VERY SHORT (LESS THAN 24 HOURS) NOTICE TO THE
LEGISLATIVE COUNCIL'S (LEGCO) CONSTITUTIONAL AFFAIRS PANEL,
WHICH IN TURN WAS FORCED TO HOLD JUST AN "INFORMAL
DISCUSSION" WHEN ONLY NINE OF ITS 44 MEMBERS ATTENDED THE
MEETING. A QUORUM OF AT LEAST 14 MEMBERS IS REQUIRED FOR AN
OFFICIAL MEETING. (NOTE: LEGCO CURRENTLY IS NOT IN SESSION,
SO MANY MEMBERS ARE TRAVELING OUTSIDE OF HONG KONG.)


4. (SBU) THE PROPOSAL SEEKS TO BUILD ON THE MINISTERIAL
SYSTEM INTRODUCED IN 2002 BY THEN-CHIEF EXECUTIVE TUNG CHEE
HWA, WHO REPLACED A NUMBER OF TOP CIVIL SERVANTS WITH
POLITICAL APPOINTEES, SOME OF WHOM WERE RECRUITED FROM
OUTSIDE THE GOVERNMENT. THE NEW PLAN HAS TWO MAIN
COMPONENTS: FIRST, IT WOULD CREATE 22 NEW POLITICAL APPOINTEE
POSITIONS IN THE GOVERNMENT, INCLUDING ONE DEPUTY DIRECTOR
AND ONE ASSISTANT TO DIRECTOR POSITION IN EACH OF THE ELEVEN
POLICY BUREAUS. SECOND, IT WOULD SEEK TO MAINTAIN THE
POLITICAL NEUTRALITY OF THE CAREER CIVIL SERVICE BY REQUIRING
OFFICIALS TO RESIGN FROM THE CIVIL SERVICE BEFORE ACCEPTING A
POLITICAL APPOINTMENT; IT ALSO WOULD MANDATE A CLEAR
DELINEATION OF ROLES AND RESPONSIBILITIES BETWEEN THE
POLITICAL AND CIVIL SERVICE TIERS OF THE GOVERNMENT. TWO
OTHER OBJECTIVES OF THE PROPOSAL ARE TO STRENGTHEN SUPPORT
FOR MINISTERS AS THEY UNDERTAKE POLITICAL WORK, THEREBY
PRESERVING THE POLITICAL NEUTRALITY OF THE CAREER CIVIL
SERVICE, AND TO PROVIDE ANOTHER CAREER PATH AND MEANS TO GAIN
GOVERNMENT EXPERIENCE FOR HONG KONG PEOPLE INTERESTED IN
CAREERS IN POLITICS.

OPEN TO EVERYONE?
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5. (C) SPEAKING AT A JULY 26 PRESS CONFERENCE, SECRETARY FOR
CONSTITUTIONAL AFFAIRS STEPHEN LAM SAID THE PROPOSAL WOULD
CREATE MORE ROOM FOR PARTICIPATION IN POLITICAL AFFAIRS,
ALTHOUGH HE ADDED THAT THE NEW APPOINTEES WOULD NEED TO

ENDORSE THE CE'S MANIFESTO AND RULING PHILOSOPHY. HE PRAISED
THE PLAN AS "OFFERING THE CHIEF EXECUTIVE GREATER FLEXIBILITY
TO BRING IN MORE POLITICAL TALENTS FROM ALL SECTORS,
IRRESPECTIVE OF THEIR POLITICAL AFFILIATIONS." REJECTING
CLAIMS THAT A LARGE MAJORITY OF THE NEW APPOINTEES WOULD BE
DRAWN FROM THE GENERALLY PRO-GOVERNMENT DAB, OR FROM ANY
SINGLE PARTY, LAM NOTED THAT CE TSANG HAD APPOINTED
INDEPENDENT DEMOCRAT ANTHONY CHEUNG TO THE EXECUTIVE COUNCIL
IN 2005. (NOTE: CHEUNG, GENERALLY VIEWED AS THE ONLY TRUE
DEMOCRAT IN THE 29-MEMBER EXECUTIVE COUNCIL (EXCO),TOLD US
WRYLY THAT THIS IS NOT THE FIRST TIME LAM HAS USED HIS EXCO
APPOINTMENT TO PROCLAIM THE ADMINISTRATION'S POLITICAL
PLURALISM. END NOTE.) AT THE SAME PRESS CONFERENCE,
SECRETARY FOR THE CIVIL SERVICE DENISE YUE SAID THE CIVIL

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SERVICE WOULD REMAIN THE CORNERSTONE OF THE GOVERNMENT. SHE
POINTED OUT THAT THE (CIVIL SERVICE) PERMANENT SECRETARIES
AND DEPUTY SECRETARIES WOULD NOT HAVE ANY "HIERARCHICAL
RELATIONS" WITH THE NEW POLITICAL APPOINTEES.


6. (C) ON JULY 27, CONSTITUTIONAL AFFAIRS BUREAU ACTING
DEPUTY SECRETARY JOYCE HO CONFIRMED TO US THAT THE GOVERNMENT
WOULD NOT ATTEMPT TO IMPLEMENT THE NEW POLITICAL APPOINTMENT
PROPOSAL DURING CHIEF EXECUTIVE TSANG'S CURRENT TERM, WHICH
WILL END IN JUNE 2007. IN THE FIRST PHASE, SHE SAID HER
BUREAU WOULD COLLECT AND COLLATE COMMENTS FROM OTHER
GOVERNMENT DEPARTMENTS AND THE PUBLIC UNTIL NOVEMBER 30; HO
SAID IT WOULD BE PREMATURE TO COMMENT ON HOW THE GOVERNMENT
MIGHT PROCEED AFTER THAT, SAYING THAT "WE JUST PUBLISHED THIS
THING YESTERDAY."


7. (SBU) PUBLIC AND PRESS REACTION TO THE PROPOSAL WAS MIXED
BUT PRIMARILY NEGATIVE. WHILE THE LP AND DAB WERE GENERALLY
POSITIVE, PROMINENT MEMBERS OF THE PRO-DEMOCRACY PARTIES,
INCLUDING CHAIRMAN LEE WING-TAT OF THE DEMOCRATIC PARTY,
EMILY LAU OF THE FRONTIER, AND CIVIC PARTY LEGCO MEMBER
MARGARET NG ALL SAID THAT THE PLAN WOULD FURTHER INHIBIT THE
DEVELOPMENT OF DEMOCRACY AND ALSO LARGELY BENEFIT THE
PRO-BEIJING DAB, WHOSE MEMBERS LIKELY WOULD RECEIVE MOST OF
THE APPOINTMENTS. SOME OF THE DEMOCRATS ALSO NOTED THAT THE
PROPOSED SALARY LEVELS FOR THE NEW APPOINTEES WOULD GREATLY
EXCEED THOSE FOR LEGCO MEMBERS. MOST OF HONG KONG'S MAJOR
NEWSPAPERS ALSO EXPRESSED CONCERNS ABOUT VARIOUS ASPECTS OF
THE PROPOSAL, ALTHOUGH ONLY THE INDEPENDENT ENGLISH-LANGUAGE
"SOUTH CHINA MORNING POST" AND THE CHINESE-LANGUAGE "MING
PAO" REJECTED IT ENTIRELY.

A REASONABLE PLAN?
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8. (C) ON JULY 27, CITY UNIVERSITY PROFESSOR AND CIVIC PARTY
MEMBER JOSEPH CHENG TOLD US THAT, DESPITE THE FLOOD OF
NEGATIVE COMMENT IN THE PRESS, HE DID NOT VIEW THE PLAN AS
NECESSARILY NEGATIVE: "SPEAKING AS A POLITICAL SCIENTIST, IT
IS REASONABLE." HE BELIEVED THE PLAN WAS PART OF DONALD
TSANG'S PUSH FOR STRONG GOVERNANCE, WHICH WAS THE MOST

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PROMINENT ELEMENT OF THE CE'S FIRST POLICY ADDRESS IN OCTOBER

2005. ACCORDING TO CHENG, THE IMMEDIATE BASIS FOR THE
POLITICAL APPOINTMENT PROPOSAL WAS THE GOVERNMENT'S
RECOGNITION THAT THE EXISTING "ILL-CONSIDERED" MINISTERIAL
SYSTEM INSTALLED BY FORMER CE TUNG LACKED A CADRE OF OUTSIDE
STAFF TO SUPPORT THE POLITICALLY APPOINTED MINISTERS, AND
THEREFORE WAS INCOMPLETE AND INADEQUATE. MORE FUNDAMENTALLY,
HOWEVER, THE CURRENT SYSTEM -- WITH OR WITHOUT THE ADDITIONAL
POLITICAL APPOINTMENTS -- WOULD REMAIN FATALLY FLAWED,
BECAUSE THE LACK OF UNIVERSAL SUFFRAGE AND FULL DEMOCRACY
RESULTED IN THE INDIRECT ELECTION OF A CE WITHOUT A FULL
MANDATE TO APPOINT HIS OWN TEAM.


9. (C) AS TO HOW THE NEW SYSTEM MIGHT WORK, CHENG SAID THAT
"UNDER THE PRESENT CIRCUMSTANCES, IDEALLY THE POLITICAL
APPOINTEES WOULD BE A MIX OF PEOPLE FROM THE POLITICAL
PARTIES AND THE BUSINESS SECTOR." HE SAID CE TSANG BELIEVED
THAT HE NEEDED PEOPLE TO HANDLE THE "POLITICAL ASSIGNMENTS"
FOR WHICH CAREER CIVIL SERVICE OFFICERS MIGHT BE UNSUITABLE.
CHENG AGREED THAT THE NEW APPOINTEES PROBABLY WOULD BE DRAWN
LARGELY FROM THE DAB, WITH A FEW FROM THE LP. ASKED WHETHER
THE APPOINTEES MIGHT INCLUDE MEMBERS OF THE PRO-DEMOCRACY
PARTIES, CHENG LAUGHED AND SAID HE HAD NOT THOUGHT THAT WOULD
BE POSSIBLE UNTIL WE ASKED HIM ABOUT IT. IN ANY EVENT, HE
BELIEVED NONE OF THE DEMOCRATS WOULD ACCEPT APPOINTMENTS EVEN
IF THEY WERE OFFERED.

DILEMMA FOR THE DEMOCRATS
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10. (C) ON JULY 27, EXCO MEMBER AND CITY UNIVERSITY PROFESSOR
ANTHONY CHEUNG TOLD US THERE WAS NOT NECESSARILY ANY REASON
FOR CE TSANG TO EXCLUDE PRO-DEMOCRACY POLITICAL PARTY MEMBERSE

FROM THE NEW GROUP OF POLITICAL APPOINTEES. ON THE CONTRARY,
HE BELIEVED SUCH APPOINTMENTS WOULD ADD LEGITIMACY AND
POPULARITY TO THE TSANG ADMINISTRATION, AND THE NON-PARTISAN
CAREER CIVIL SERVANTS ALSO WOULD BE UNLIKELY TO OBJECT.
CHEUNG OPINED THAT THE CRITERION FOR THE NEW APPOINTMENTS
SHOULD BE WHETHER THE PUBLIC VIEWED THE INDIVIDUALS AS
COMPETENT, RATHER THAN AS MERE RECIPIENTS OF POLITICAL
LARGESSE. THE DILEMMA FOR THE DEMOCRATS, SAID CHEUNG, WOULD
BE WHETHER TO ACCEPT ANY APPOINTMENTS THAT MIGHT BE OFFERED:
IF THEY JOINED THE ADMINISTRATION, THEY MIGHT BE PERCEIVED BY
THEIR PARTY COLLEAGUES AS COLLABORATORS ADDING LEGITIMACY TO
AN UNDEMOCRATIC GOVERNMENT; IF THEY DECLINED, HOWEVER, THEY
COULD BE LABELED OPPOSITIONISTS SIMPLY INTENT ON BLOCKING THE
TSANG ADMINISTRATION'S EFFORTS TO IMPROVE GOVERNANCE.

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MULLINS