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3.

The basis for Chinese concern is not easy to trace. I t

does not appear to be specifically about the reforms introduced in the 1984 White Paper, although the Chinese probably were

annoyed by ou r failure to consult them at that time. What

appears to worry them more is what we are planning to do in the

future.

We have however not yet given any indications of

this, or indeed taken any decisions.

4.

There seem to be two reasons for Chinese concern: the

first is a matter of form, that we are attempting to impose on Hong Kong

Kong a political structure in advance of the publication

of the Basic Law, which they will in practice find it difficult

not to adopt in the Basic Law. Thus Britain, not China, would

be laying down the future structure of Government, and

devolving power to the people of Hong Kong.

5.

The second is of substance: they fear that we intend to

establish in Hong Kong the same sort of Westminster model as we did in other dependent territories before independence, and

that it will prove as unsuccessful there as it did elsewhere. Though they have not themselves ruled out direct elections they

are concerned about the prospect of them, and even mo re about

the emergence of political parties, which they see as the

inevitable concomitant of direct elections.

6.

Chinese alarm appears to have risen in the last few

months mainly as a result of the public debate about the se subjects in the Hong Kong media, which they think is being stoked up by

up by the Hong Kong Government. They suspect us of having a carefully laid blueprint which we are preparing to put

into effect.

Redacted under FOI Exemptions Sec 27(1)

committed to the

They seem to recognise that we are

1987 review, but they want it to produce no

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