DEFENSIVE NOTES

CONSTITUTIONAL CHANGE

1. It is established UK policy to advance dependent territories

towards representative self-government. But in the special

circumstances of Hong Kong, Ministers would have to be

thoroughly convinced that there was an overwhelming desire in

Hong Kong for change; and we would also need carefully to

consider the risk of dividing the population into Communist and non-Communist (pro-Taiwan) factions. Recent election of a

pro-KMT candidate to Urban Council was unduly criticised in

the left wing press and we are in no doubt that this represented

the official view of the Chinese Government.

2. At the same time, British and Hong Kong Governments both

agree it is a desirable objective that Legislative Council

should include people who can speak for all levels of society. Suitable candidates will, we think, emerge from the (approx, 1,600)

Mutual Aid Committees; but most of the Committees are little more

than a year old. Promotion to LegCo is a big step, which cannot

be rushed.

URBAN COUNCIL

3. This fulfils an important and valuable function in the

urban areas; and the members strike me as dedicated and public- spirited. I discussed ways of extending its powers into various non-controversial fields with the delegation from the Urban

Council which was here last month. Some of these struck me

as having merit but of course constitutionally they are matters

for discussion with the Governor who will no doubt be considering

them.

CHINESE IMMIGRATION

4.

Immigration from China built up during the 1970s to a level which Hong Kong could no longer absorb (an estimated total of 74,000 in 1973 compared with less than 13,500 in 1971). The

/problem

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