finding ways and means for greater participation in policy thought and policy making.

CONCLUSION

There are clearly three main alternatives open to the British Government which is the 'de jure' and 'de facto' government of Hong-Kong.

The first would be to allow the status quo to remain.

The second would be for some moderate reforms to be made in the adminis- trative, legal and social spheres.

The third would be to undertake, and give support to those who believe in, a thorough programme of meaningful social change in Hong-Kong.

It would seem that the first option would hardly be socialist and the second would be impractical as it would generate concerted opposition from vested business interests in Hong-Kong. This has been the official reaction

to the third option, i.e., it would damage business confidence.

As the vested interests in Hong-Kong are powerful it would seem that if a British government wished to see a thorough change in the social conditions in the colony, it would have to have/power base in the colony (aside from its armed forces). This could hardly be built without allowing full democratic rights to the people of Hong-Kong, i.e. freedom for political parties, un- fettered trade unions, and a democratically elected Assembly to exercise power.

An independent Hong-Kong has no long-term viability because of the Chinese situation. Its future will clearly be as an integral part of China. The problem in the short-term is whether the colony will follow the present course of development or take a more democratic, socialist path. The long-term position of Hong-Kong would be helped if the present Labour government disassociated them- selves from the 19th century Unequal Treaties and recognised that Hong-Kong will return to China. To date no British government has even recognised China's position in principle.

It would also be useful if the British government undertook a Commission of Enquiry into conditions in Hong-Kong and ensured that normal governmental and economic statistics were produced for Hong-Kong.

Thus the 'third option' would include within it:/

1/

¿

Recognition that a long-term independent Hong-Kong is not viable and that it will become part of China.

Full democratic rights for the people of. Hong-Kong.

3/ Commission of Enquiry into conditions in Hong-Kong and

publication of statistics.

''

47 Vast improvement in social services with full implemen-

tation of the I.L.O. Conventions, which are applied to Britain.

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Page 30Page 31

PRIVATE AND CONFIDENTIAL

THE LABOUR PARTY

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