CONFIDENTIAL

2.

3.

Mr. Pang said that, since the disturbances, the

people of Hong Kong have become more politically conscious

and it would therefore be necessary to introduce changes

which would enable them to have a greater participation in

their own affairs. In view of this a system of local

councils should be introduced in Hong Kong as soon as

possible. The Communist opposition in Hong Kong had

been exploiting social and economic grievances to their

advantage and they would continue to do this in the hope

of obtaining wider public support. They could only be

defeated if early reforms were to be introduced which

would give the people of Hong Kong a say in their own

affairs.

4.

Mr. Chen said that apart from constitutional

changes, immediate consideration should be given to the

adoption of Chinese as a second, official language, since

the vast majority of the people were Chinese and could not

express their views articulately in any language other

than their own.

5.

Lord Shepherd stated his views on the manner

and extent to which constitutional and political changes

might beintroduced in Hong Kong at the present time.

ent]t

It

was not possible at present to create a Parliamentary

democracy in the Colony by which the voice of ordinary

people could best be heard. Neither was it possible

to introduce radical changes to an established system of

Government without this being followed by serious reper-

cussions. He said that he himself would not object to

giving Hong Kong a democratic system of Government but this

resent because a transfer of

was not possible [at present] be

sovereignty from Britain to the people of Hong Kong would

invite a strong reaction from Communist China which would

be detrimental to Hong Kong's interests.

CONFIDENTIAL

/6.

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