Only after this process does the Governor recommend that we

might move to direct popular elections and only if it was

decided that this was appropriate at that time. The Governor proposes to issue a Green Paper in the Autumn containing the Government's proposals. This would be at about the same

time as the proposed draft agreement is published. Before that date the proposals would need to be agreed with the

Executive Council and discussed in confidence with members

of the Legislative Council.

5. The alternative is to move more quickly to direct

elections to LEGCO, EXCO and the post of Governor. There

are demands in some quarters in Hong Kong for early moves

towards some members of the Legislative Council being

selected on a more visibly representative base than the

present system of appointment. The approach of 1997 and

the negotiations on the future have also stimulated public

debate on the constitutional issues. If the link with

Britain is broken a new source of authority would be needed

to provide the political institutions of government and to

avoid a political vacuum that could be exploited by the

Chinese. There will also be political pressure in Parliament

to move to a system of direct elections in Hong Kong.

6. The Governor has pointed out the problems in moving more

quickly to direct elections. These include:

(a) The relatively retarded state of Hong Kong's political

development. There are still strong Chinese traditions in the community in Hong Kong. Policy formation at

the moment is based on consultation and consensus and

not on an adversarial party system as in the United

Kingdom. It will be easier to maintain stability if

a new structure is built progressively on what already

exists.

SECRET

/(b)

Share This Page