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claim that the proposals for indirect elections are intended to preserve the dominant position of the establishment in

Hong Kong, and demonstrate both the continuing colonial

mentality of the Hong Kong Government and HMG's unwillingness to

overcome this. Some may also point out that the proposals would mean that the last real chance of introducing a western-style

democracy in Hong Kong before 1997 is being wasted.

4.

The Governor believes that it is important not to over-

estimate the demand in Hong Kong for direct elections. This

demand comes mainly from academics and members of small pressure groups. While there is general support for more representative

government, there is also a strong expression of concern, both

in the business community and at the grass roots level, that the

Hong Kong Government might move too far and too fast and in

consequence introduce a factor of instability at this highly

sensitive time.

5.

The Green Paper rightly stresses that the present system

of Government in Hong Kong operates on the basis of consultation

and consensus and that any developments should aim to maintain

this. Thus the proposals in the paper aim to extend political

power more deeply into the community, but they also seek to maintain the "corporate" format of the organs of government

in Hong Kong in order to reduce wherever possible the

opportunities for ambitious individuals on either the right or the left to dominate particular areas of government. It is for

this reason that the Governor does not favour a "ministerial"

system whereby members of the Executive and Legislative Councils

would be allocated specific areas of responsibility (paragraph 56 of the draft Green Paper). He is strongly of the view that the

Council should continue to act collectively on all issues.

6. I propose, that we should inform the Chinese about the

Green Paper immediately before publication but should not

consult them on the proposals in it. They have already, in

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