CHINA'S warning that it would re-elect all three tiers of Hong Kong's Government in 1997 has been received with reservation by members of its Preliminary Working Committee for the Special Administrative Region (SAR). Concerns have been raised that holding fresh elections in 1997 for the district boards and municipal councils in addition to the legislature would deal a blow to the public's confidence and affect government efficiency. Commenting on the suggestion, which was made by some Chinese officials and confirmed at this week's meeting of the local deputies to the National People's Congress, working committee member Tam Yiu-chung said this could create extra work for the SAR government. ''The problem is that the re-election would only produce a district board which would last for only one year. The terms of the members elected in 1994 will terminate in 1998 anyway,'' he said. ''Besides, the people of Hong Kong would certainly feel at odds when they have to participate in three elections within a short period after the changeover.'' Mr Tam's view was shared by Rita Fan Hsu Lai-tai, a member of the committee's political sub-group. The second plenary session of the working committee opens in Beijing this morning to endorse the work plans of its five sub-groups. Although the political sub-group is set to discuss the formation of the first legislature in 1997 - following Governor Chris Patten's decision to table his electoral bill in the absence of a Sino-British accord - it is not sure whether the setting up of the other two tiers of government will be addressed. ''I do not want to see that happen,'' Mrs Fan said when asked whether the committee should include it in its agenda, which will be endorsed today. She said the district boards and municipal councils did not hold great political power and should not be drawn too much into the Sino-British row. It is understood that China and Britain disagreed over the abolition of the appointment system. The Chinese side insisted the SAR government should retain the right to bring back the appointment system if it was scrapped before the handover. ''If the future SAR government decides to retain the appointment system, it could be introduced by adding to the number of seats,'' Mrs Fan said. She hoped that there could still be convergence in the political system. This could be possible if the legislature and the committee devised a political model on the basis of the Basic Law. ''Then we can come up with a political structure which is more or less the same, leading to a higher chance of convergence,'' she said. But another member, Ngai Shiu-kit, who is also a Hong Kong legislator, said: ''We are here to discuss post-1997 affairs. We are not here to influence the opinion of the legislature.'' Meanwhile, the sub-group on culture and education has proposed initiating consultation on certain issues, such as religion, arising from the transition of sovereignty.