If there is a need, amendments to the method for selecting the Chief Executive's third term may be considered, Secretary for Constitutional Affairs Stephen Lam says.

He told the Legislative Council today that this was the conclusion of the Constitutional Affairs Bureau after it conducted detailed research on concerned articles in the Basic Law and sought legal advice from the Department of Justice.

"However, any proposal put forth must be handled in accordance with the principle of gradual and orderly progress and in the light of the actual situation in Hong Kong as stipulated in the Basic Law, and according to the procedures and requirements set out in Article 45 and Annex I of the Basic Law," Mr Lam said, adding that the Chief Executive has said it is the Government's clear duty to pursue democratic advancement according to the Basic Law.

Mr Lam said in dealing with the subject of constitutional development, the Government will adopt an open and receptive attitude.

He appealed to the community, particularly legislators and political parties, to be open-minded and receptive, and to continue to embrace the spirit of "widening the common ground, narrowing differences and building consensus" in discussions both in and outside the council.

"We should endeavour to create new room for constitutional development beyond 2007," he said.

The Government will make full use of the coming three years to carry out the review on constitutional development and conduct public consultation.

It will:

* conduct public consultation on constitutional development within 2004, and gather views early next year;

* deal with the procedures stipulated in the Basic Law in 2005; and,

* enact any local legislation in 2006.

Mr Lam reiterated the Government will make a decision later this year on the detailed timetable and thereafter report to the council.

The Government does not so far have any pre-determined package of proposals on constitutional development after 2007.

He said the proper and responsible way is to consult widely and to consolidate views gathered from various sectors of the community. Legislators should communicate frankly and listen to different views with an open mind.

For District Councils, Mr Lam reiterated an earlier undertaking by the Government to conduct a review of their functions, roles and composition after the upcoming elections.