CONFIDENTIAL

and Legislature of the Hong Kong Special Administrative Region shall be composed of local inhabitants, and the Legislature of the Hong Kong Special Administrative Region shall be constituted by

elections. The nature of the electoral system after 1997 is not

however specified in the draft agreement.

[IF PRESSED]

21. The possibility of introducing direct elections to the

Legislative Council will be covered in a review on representative government to be held in 1987. Due account will be taken of any

views which the Chinese Government may have expressed.

CONFIDENTIAL

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