PM/84/106

PRIME MINISTER

SECRET

HKD

EXPS.

PS / Mr Luce PS1 Rus Sir P. Cradock

Si W. Hording SirJ

Greek)

Mrow fes

Minfaller Research Dest

Hong Kong:

Constitutional Developments before 1997

1.

John Coles' letter of 22 March conveyed your agreement to the proposals for constitutional development in Hong Kong up

to 1997 contained in the draft memorandum attached to my

minute of 19 March. This memorandum was put to the Executive Council on 10 April.

The Council was broadly in agreement with

the proposals, subject to a few minor amendments that demonstrated their cautious approach to this issue, and advised that the

Hong Kong Government should proceed with the drafting of a Green Paper for publication during the summer. I referred to this Green Paper when winding up the debate on Hong Kong in the House on 16 May. :

2. A draft Green Paper was considered by the Executive Council

on 19 June. I attach a copy of Hong Kong telao 1669 which contains the text: as revised in the light of EXCO's comments. The proposals, which are summarised in paragraph 65, are very much on the lines of those we approved in March.

3. It is likely that in Hong Kong and the UK the main interest will focus on the proposed arrangements for the indirect election of members of the Legislative Council and the arguments put forward for not introducing any element of direct elections at this level. These can be expected to receive a mixed reception. Some will agree with the Hong Kong Government's arguments (paragraphs 27 and 28 of the draft Green Paper).

Other will

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