CONFIDENTIAL
Constituti on
miles) expires in 1997 and there is at the moment no
likelihood that it will be renewed. Without the New
Territories the Colony would not be a viable entity.
Hong Kong has little or no natural resources and its
economy depends entirely on the skills of its people
and on their ability to trade. External confidence in
the Colony's ability to maintain her position and pay
her way is therefore of vital importance.
4.
Although Hong Kong possesses a highly sophisticated
community and modern facilities of all kinds with a
buoyant economy the business of Government must be
conducted under a Crown Colony Constitution which provides
for no elected element in either the Executive or
Legislative Councils (see paragraph 5 below). The former
has a nominated unofficial majority and the Governor is
required to consult with it save where matters are
unimportant or too urgent. He may act contrary to the
advice of the Executive Council but in such cases must
report fully to the Secretary of State. The Governor
legislates with the advice and consent of the Legislative
Council which has twelve official and thirteen nominated
unofficial members. The Governor, as President, has an
original and a casting vote, thus maintaining an official
majority. There are the usual reservations to the Crown
of the power of disallowance and of the power to legislate
by Order in Council for the peace, order and good government
of the Colony.
5.
Introduction of the electoral principle into the
Legislative Council would inevitably import the politics
2 CONFIDENTIAL