SECRET.
Lease of New Territories
Constitution
3. Another of Hong Kong's basic problems arises from the
fact that the lease of the New Territories (which comprise
365 square miles out of the Colony's total area of 400 square
miles) expires in 1997 and there is at the moment no
likelihood that it will be renewed.
Without the New
Hong
Territories the Colony would not be a viable entity.
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. 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,
SECRET
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