CONFIDENTIAL

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sympathy from MPs and others in this country. Mrs Elliott recently

wrote to the Prime Minister to say that she and her colleagues

intend to send a delegation to London in the coming months to dis-

cuss possible constitutional changes in Hong Kong.

6. In addition to being sure that any changes would be welcomed by

the people of Hong Kong, we also need to take account of the

possible Chinese reaction. In the absence of any popular pressure

for change, we have hitherto considered it prudent not to introduce

reforms that might create uncertainty about our future intentions,

at least until the problem of the New Territories leases (see Brief

No. HK3c) has been satisfactorily dealt with.

Hong Kong and General Department

September 1979

CONFIDENTIAL

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