RESTRICTED

consulted on any specific arrangements proposed for the future.

HONG KONG LEGISLATIVE COUNCIL DEBATE, 14 MARCH

12. Initiative by LEGCO Unofficials. Natural and understandable. Debate procedural. Unofficials simply seeking opportunity to discuss any proposals for Hong Kong's future. Too early to say

how Hong Kong opinion will be consulted on any proposed

arrangements. But important that bodies such as LEGCO should play some part. Impressed by mature and responsible way in which

debate conducted.

EXTENSION OF DEMOCRACY IN HONG KONG

13. Continuing process. Reflected in recent announcement [15

February] of plan to establish a Regional Council with an elected

element for areas not covered by Urban Council and to increase

proportion of elected members on District Boards. Hong Kong

Government intend to continue building on this foundation, taking

fully into account aspirations of Hong Kong people, as well as other relevant factors. HMG endorse this approach.

CONFIDENCE IN HONG KONG

14.

Deeply conscious of Hong Kong's concerns. Believe they can best be met by seeking negotiated settlement acceptable to

Parliament, China and people of Hong Kong. Committed to seek such

a settlement. Believe our good relations with China will help us to

achieve.

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