You will all know the constitutional position as well as I do,

so I do not propose to say anything about that; and I need

hardly remind you of the difficulties of introducing any

constitutional developments.

As I see it, we find curselves in the extraordinary

situation in which the people of Hong Kong by any normal standards

would be well able to run their own affairs and yet, because of

China, we cannot move from the traditional form of Crown Colony

government with all that that involves.

We in London appreciate that even under this system the

Hong Kong Government would be unable to administer the Colony

if it did not take extreme care to consult public opinion at all

stages in the evolution of local policies.

But equally under

Nor could I deny to

this system I cannot ignore my responsibilities to Parliament

for the administration of the Colony.

Members of Parliament their right to interest themselves in

Hong Kong affairs.

<<

The third subject on which I wanted to touch - Hong Kong's

commercial relations with cther countries follows on from what

I have just been saying. It is, I think, common ground between

us that, wherever possible, the conduct of Hong Kong's

commercial relations should be left in Hong Kong's hands.

Difficulties can, however, arise in the field of inter-

national commercial policy and we must be realistic and accept

that they have already arisen from time to time over the last ten

years or so. What then should we do?

The

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