CONFIDENTIAL
an original and a casting vote.
The power to legislate rests
with the Governor "by and with the advice and consent of the
Legislative Council".
disallowance and the power to legislate by Order in Council
for the peace, order and good government of the Colony.
The Crown reserves the power of
Present Political Situation
4. Since the end of the Communist-inspired disturbances in
1967 the Colony has remained calm. Local Hong Kong Communists
are under instructions from Peking to observe the law and to
concentrate upon deriving the maximum possible economic benefit
for China from the Colony. At the same time, they lose no
opportunity of criticising the Government on the grounds of real
or alleged shortcomings on the part of the administration,
particularly in such spheres as labour, resettlement and hawkers.
The Chinese Government finds Hong Kong of immense economic and
over one-third of China's foreign exchange
political value;
earnings come via Hong Kong. The most serious remaining point
of friction between Hong Kong and China is the 48 Communist
prisoners still serving sentences for offences committed during
the disturbances in 1967. The Chinese constantly bring up this
problem in their exchanges with the British Government and they
could eventually instruct their followers in Hong Kong to whip
up a campaign on this issue, or apply other pressures, if a
solution is not found to this question. This issue apart,
normal workmanlike day-to-day relations have been resumed between
Hong Kong and China since 1967.
2
CONFIDENTIAL