CONFIDENTIAL

almost all the initiative comes from the top. The despatch's

"tail-piece" suggests that the Governor has concluded that the

problem may be insoluble without some direct elections to

Legislative and Executive Councils. He may be right. His

promised proposals will deserve careful examination.

difficulties remain formidable.

15.

But the

I do not consider that we should this year send a despatch

in reply to the Governor's report. Subject to further comments

I would propose to write to the Governor with a bowdlerised

version of the points outlined above.

16.

I have sent the despatch for printing.

1 February 1974

сс FRD FED

EID(E)

CONFIDENTIAL

AC Stuart

Hong Kong & Indian Ocean Dept.

Page 90Page 91

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