Constitution

CONEIDENTIAL

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 elcmort

The formOK in either the Executive or Legislative Councils.

has a nominated unofficial majority and the Governor is

required to consult with it save where matters are urúmportant 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 naintaining an official majority. There are the usual reservations to tho Crow of the power of disallowance and of the power to legislato by Order in Council for the peace, order and good government

of the Colony.

RELATIONS WITH UNITED KINGDOM

5.

The combination described above of constitutional infancy on the one hand and economic sophistication and adulthood on the other has had a somewhat unfortunate effect on United

CONFIDENTIAL

Kingdom

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