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B(174

C(180

elected Governorship, retaining an appointed Governor with a Chief

Minister below him and instituting an elected Governorship with cooperation with the Chinese through a joint group. It recommends

the latter course, although the arguments are very finely balanced.

The Ambassador's views

4.

Sir R Evans supports the fourth option. He believes that

some sort of deal could be struck with the Chinese involving their

acceptance of an elected Governor in return for our agreement to a

joint group in Hong Kong. He also considers that we would need to agree that other senior officials in Hong Kong should be chosen with

Chinese concurrence. (Peking telno 1152).

The Governor's views

5.

The Governor has now sent his own draft paper on the subject. (Hong Kong telno 1673). He disagrees with us on two main points:

(a) He does not accept that we should agree to a joint group in

Hong Kong:

(b)

He does not agree that we should consult with the Chinese about

the development of representative institutions, including the

Governorship.

He argues that we must have an elected Governor in Hong Kong before

1997 and from this proceeds to consider two questions: how HMG

exercise their residual responsibility after the election of a

local Governor, and how Chinese acquiescence in representative

systems of government could be obtained, without consultation.

6. Many of the Governor's arguments are persuasive, particularly

the value of establishing a complete system of representative government before 1997. However he seems to put too little weight

on the difficulties of maintaining British authority under our

elected Governor. I would agree with him that it will be the

proximity (in time and space) of Chinese power which will provide

the main deferrent to disorder, but he does not go on to apply the same logic and realism to the question of the joint group. We can expect it to exist; we need to control and make use of it and it

need not be more of an inhibition to representative institutions than the knowledge that the PLA are over the border. The key point

is that any system will require Chinese acquiescence.

We shall in

the long term do more for stability if we obtain it by some kind of

deal than if we attempt to impose our own arrangements for the

pre-1997 period against Chinese wishes. Here the Governor's

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/proposal

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