CONFIDENTIAL
·302
Funclese
worlə. mon formal
selve him for
Leg ci
1. The Future of Hong Kong
ANNOTATED AGENDA FOR LORD GORONWY-ROBERTS'S MEETING ON HONG KONG
A major factor in our administration is the four million Chinese who have chosen to live in the Colony. Other considerations are more finely balanced. The Chinese Government show no disposition to demand changes in the status quo. If discussions on the future were begun, the fact that they were being held would affect
confidence. This would precipitate economic and administrative problems that could make the Colony difficult to govern.
2. Possible Constitutional Developments
In his Annual Report the Governor promised us his ideas on possible developments towards some form of popular representation. We have also asked him for his proposals on a number of appointments or re-appointments to Legislative and Executive Councils which are due at the end of June. Mr James Johnson MP suggested to Lord Goronwy-Roberts, as a first step, wider elections to the Urban Council through the introduction of a ward system, and then a convention by which three or four elected members of the Urban Council might be nominated to Legislative Council. Lord Goronwy- Roberts discussed this with Mr Hilton Cheong-leen who is both an elected member of the Urban Council and a member of LegCo, but who does not think that the arrangement should be formalised. An important factor in all this would be the reaction of the Chinese Government.
3. Social questions
Inflation has meant falling real wages. This increases discontent and could have political consequences. The Hong Kong Government's massive social programme will help, but it is a ten-year scheme. It also puts strain on the budget which, in the absence of new taxation, is likely to run into deficit for the first time in recent years.
CONFIDENTIAL
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