CONSUL GENERAL'S FAREWELL CALL ON EXCO CONVENER

C O N F I D E N T I A L SECTION 01 OF 02 HONG KONG 001314

SIPDIS

STATE FOR EAP/CM

E.O. 12958: DECL: 07/16/2024
TAGS: PGOV PREL HK
SUBJECT: CONSUL GENERAL'S FAREWELL CALL ON EXCO CONVENER
C.Y. LEUNG

Classified By: Consul General Joseph Donovan, reasons 1.4 b/d.


1. (C) Summary. In his farewell call on Executive Council
(ExCo) Convener C.Y. Leung on July 15, the Consul General and
Leung discussed Hong Kong's electoral reform consultations.
Leung noted that Beijing plays a major role, but that there
has been a lack of progress and Hong Kong is not close to
reaching a consensus. Leung also highlighted the
relationship between the Chief Executive/Bureaucracy and
LegCo calling it a fundamental issue that continues to
challenge the Hong Kong government. Leung noted that a Hong
Kong court is currently reviewing the authority of LegCo
panels to conduct hearings, summon witnesses and demand
documents. The outcome of the court case could have a
significant impact on LegCo's authorities, he pointed out.
End Summary.


2. (C) Executive Council (ExCo) Convener C.Y. Leung on July
15 told the Consul General that Hong Kong is not any closer
to reaching a consensus on electoral reforms. The three
primary players represented by the Chief Executive/Civil
Service, LegCo and Beijing interact frequently, but no one
person or entity has taken charge. Beijing is concerned with
the outcome but hasn't provided clear, specific guidance.


3. (C) Leung and the CG discussed the relevance of a July 14
Court of First Instance decision granting a plaintiff's
request for a judicial review of a LegCo select committee's
powers to summon a witness and demand documents. Leung
explained that the court agreed to review LegCo panels'
(standing committees) authority to conduct hearings in place
of LegCo as a whole. In response to the CG's query whether
the review could effect LegCo's handling of issues such as
the Lehman minibonds imbroglio, Leung mused that until the
review is completed those summoned by LegCo's panels need not
respond. While the review is on the judicial fast-track,
regardless of the decision, numerous appeals could be
expected, lengthening the period that LegCo panels' ability
to conduct hearings would be on hold. Leung stated that many
of his colleagues believe that LegCo has exceeded and
possibly abused the powers granted by the Basic Law through
the hearing process. LegCo has not won any sympathy by
exercising these powers frequently over last 12 months, Leung
stated. Coming back to the Lehman minibonds issue, Leung
noted that LegCo put a great deal of energy into this issue,
convening hearings and inquiries, but even the complainants
have come to recognize the inefficacy of LegCo's efforts to
resolve this issue.


4. (C) The CG noted that our attention has been focused on
the process of choosing the Chief Executive and LegCo members
in Hong Kong's electoral review consultations but that the
authority of LegCo and it relationship to the Hong Kong
bureaucracy/civil service were equally important issues.
Leung agreed that the relationship between the Civil Service
and LegCo is a very fundamental issue. He recounted his
experience as a drafter of the Basic Law in 1988-1990, when
the Hong Kong government printed one million copies of the
draft Basic Law for Hong Kong citizens to review and provide
comment. (The draft Basic Law were distributed through 950
Hong Kong bank branches - left on counters for pick-up.)
Even then the relationship between Chief Executive/Civil
Service and LegCo did not elicit much comment, Leung
remembered. He added that Beijing wanted the Basic Law to be
as simple as possible and now Beijing consistently argues on
the basis of "intent" of the law, while lawyers such as
Martin Lee focus on the words and not the "intent."


5. (C) Leung stated that Hong Kong has been debating direct
elections by universal suffrage for twenty years with little
progress. He hoped that during the next round of
consultations on this issue Hong Kong citizens will have the
patience to consider the various issues involved, including
the relationship between a directly elected Chief Executive
and a LegCo that consists of district representatives and
representatives of functional constituencies. He said that
"We've tried to explain to the Hong Kong people that Hong
Kong democracy is not self-contained" and concluded that Hong
Kong's chief executive election process would produce
Beijing-approved candidates.

Background
--------------


6. (U) The Executive Council, or ExCo, is an advisory body
to the Chief Executive. ExCo is meant to ensure the CE takes
advice from key members of government and society before
using his otherwise broad unilateral powers. Leung who does
not belong to any political party, is very influential in

HONG KONG 00001314 002 OF 002


Hong Kong politics, but is not necessarily very popular.
This is likely linked to his conservative stance on political
issues and his defense of various pro-Beijing policies. The
local Chinese press has tipped Leung as a possible contender
for the Chief Executive election in 2012.






DONOVAN