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into communist and non-communist factions (in the form of pro-Feking and pro-Taiwan groups) with unsett- ling effects within Hong Kong itself and on HFG's relations with China. As it is, the Chinese have indicated on many occasions that the future statu of Hong Kong is a matter to be settled in the full fat of time. For the present, the Chinese have aces, Lod the status quo. This being so, our aim will be Lu continue to administer Hong Kong in the interests of the four million inhabitants who have chosen to Lise

there.

6.

It should not be assumed that in the absence al an elected legislature, the Hong Kong Government is out of touch with public opinion. Deprived of the

romal channels of communication provided by representative government, it has developed other means of providing participation and the organized expression of public opinion in the government procedu There are, for example, a large number of advisory committees and neighbourhood community organisation, such as the Mutual Aid Committees and the local welfare organisations known as Kaifongs which serv. to help bridge the gap between the man in the stret and the Hong Kong Government.

7. The Ombudsman type office run by the Unofficial Members of the Executive and Legislative Councils

which is mentioned in our note on the role of the

Governor, is also a very important device for keeping the government in touch with public opinion.

8. Since Hong Kong is an important trading power in its own right and a place where social attitudes are Chinese rather than British in character, it is not surprising that there is scope for friction between the British Government and the Hong Kong Government. In fact, relations with Hong Kong are rarely, if ever, straightforward. There are a number of issues at present which illustrate the difficult nature of the relationship. Some of these, such as the possible

restoration of the death penalty, EEC policy on

ATIC

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