SECRET

16.

This policy, we would judge, would attract widespread

public support and considerably ease the problem of making

further progress towards a more satisfactory urban society.

It appears to suit local circumstances and to be compatible

with what is judged to be Peking's attitude to the institutions

of the Colony, provided it is not pushed too fast, or gives

rise to factionalism or fear of lack of decision or control.

Last year's difficulties over the election of a pro-Taiwan

member of the Urban Council suggests that Peking's attitudes to

the question of elections will not change in the near future.

17.

Possible objections to Hong Kong's present plans for

institutional development are:

(a) that although right in principle the execution of them

may not be rapid enough to contain the disquiet felt in UK

political circles at the absence of properly representative

institutions;

(b)

change of any sort might encourage pressure for an elective

system; and

(c) enlargement of, or change in, the composition or type

of membership of the Legislative Council might render the Government's

task of achieving the necessary measures of social and economic

advance more difficult, just when maximum progress is required in the run-up to the period of negotiations with the Chinese. The development of factionalism within the Council, or lack of

confidence of the public in it, or lack of confidence between

Unofficials and Officials would all represent serious handicaps

at such a time.

To these it may be answered that:

(a) the execution of these plans must necessarily take

into account both the political pressures here and the

political realities in Hong Kong. If right in principle, the question of timing is one which can be resolved through

mutual consultation. Moreover it is reasonable to hope

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