HONG KONG'S CONTINUING STATUS AS A COLONY:
DEMOCRATISATION
Democratisation means elections. An elected legislature means (and has to mean if it is to have any reality) a transfer
of power to a local Government. This would be a step towards
internal self-government and independence. The Chinese Govern-
ment have made it very clear, both in the UN Committee of XXIV
and in private exchanges with us, that they regard Hong Kong as
Chinese territory, and it is apparent that they would not tolerate any steps towards Hong Kong's independence. They are content with
the status quo.
DEATH PENALTY
The death penalty still exists under Hong Kong law. Although no death sentence has been carried out since 1966,
implementation of the death penalty is still strongly favoured
by public opinion in Hong Kong, at least in extreme cases.
Abolition would be strongly opposed.
RETURN OF ILLEGAL IMMIGRANTS FROM CHINA
The Governor has been authorised to conclude an agreement
with the Chinese at official level for return of some illegal
immigrants to China.
RETURN OF ILLEGAL IMMIGRANTS FROM OTHER SOUTH-EAST ASIAN COUNTRIES
Members of the group of 118 South Vietnamese returned to Saigon on 17 June are awaiting trial at a date still to be
announced. It is therefore still not possible to assess the validity of the South Vietnamese Government's assurances about the group's treatment. HKIOD is preparing a submission for
Ministers on future policy.
GODBER AND CORRUPTION
The Godber hearing will be resumed on 31 October. There
will be wide publicity, and almost certainly some adverse criticism, if Godber is not returned.
Operations department The Independent Commission Against Corruption's is now well-
n'sfis established and some senior UK police officers are being seconded to it. The Corruption Prevention and Community Relations Departments will also soon be at work.
TAXATION STRUCTURE
Hong Kong's system of taxation is essentially unprogressive. The flat rate currently stands at 15%.