(a)

(b)

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the implications for constitutional development of the need

for a test of acceptability of arrangements for the future of

Hong Kong;

the desirability of more specific consideration of the

establishment of direct elections before 1997.

1

J

In Hong Kong telno 1991 the Governor gave his views that we should

keep the issues of constitutional development and acceptability

separate. He considers also that while full scale direct elections

should not be ruled out, it would not be practicable to hold these

for some time. He also took issue with a comment by Sir Percy

Cradock (Peking telno 1360) who had argued for direct election of

the Governor in order to provide the Chinese with the least possible opportunity to influence the outcome.

The Development of Internal Self-Government and the Test of

Acceptability

8.

The Governor is right to distinguish these. Timing is the first difficulty. It would be extremely difficult to speed up the

development of "democracy" in Hong Kong in time for any new institutions to be used to gauge public opinion on an arrangement agreed with China. It would be wrong for the sake of obtaining an

apparently democratic test to try to rush in an expanded system of direct elections by the end of 1984. Such a move would in effect

set up a referendum. Even if the Chinese did not object, which they

probably would, the chances of factional disputes between left and

right wing adherents in Hong Kong would be very great.

9. On the other hand I think that the Governor's draft paper goes

too far in ignoring the fact that the test of acceptability will

arouse great interest in Hong Kong and in Parliament. It will be

seen as something of a stepping stone towards constitutional development. In fact the proposals which the Governor has made for

testing acceptability, as expanded in FCO telno 1358 to Hong Kong,

would use the existing system of Regional and District Boards. The prestige and influence of these bodies will obviously be greatly increased if they are used for this purpose. The Governor's plans to build on them will be assisted. The point should be brought out more clearly in the paper.

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