CONFIDENTIAL

18

I agree generally with Mr. Stuart's comments, subject to one reservation. This concerns the issue of direct elections

to the Legislative and Executive Councils. I agree that

we should await the Governors views. But I think that there will be a temption to look hard at the problems which would become easier if we could point to some representative organs in Hong Kong simply because these have been uppermost in our minds for the last year, and to give less weight to problems which could be engendered for the future once we started on the road to representative government. The problem is rather similar to that of the Chinese Representative. The first step is a small one but once it has been taken it is impossible to reverse and the process acquires a momentum of its own. My own view is thus that we could only start on that road if we were prepared to see very substantial changes in the government of Hong Kong within the next ten years. The issue is also one in which the Chinese in Peking would take an immediate interest because they know that Hong Kong left to itself would choose independence and not reversion to China. They would not want to see opportunities for that option opened without vigorous action to counter it and they could be drawn more deeply into the political arena in Hong Kong when for the present they would much rather stay out. So I would prefer not to give any hint of our attitude either way in any comment sent on this

despatch.

(Youde)

8 february 1974

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