CONFIDENTIAL

particularly

important

in

government institutions.

in

are a of development of Hong Kong's

The se have remained workable over the

in

years because we have adapted them to meet needs of a changing society. If we just bring that process to full stop it would create trouble and ultimately damage prosperity and stability. Agreed to review

1987 as a result of strong public pressure. Date was connected with 1988 elections and had nothing to do with da te

of publication of Basic Law, which we did not then know.

Committed to doing this and must do it honestly, both as regards examination of need for changes and consultation of public opinion. Any thing else, would severely damage Our authority

Hong Kong. But recongise need for convergence be tween institutions we have developed and those you will lay down Basic Law. Not our intention to attempt

to force you to accept any particular formula in Basic Law. ideas for 1987 not yet determined and will not be

present system settles down. Believe both sides basis of Joint Declaration which lays down among other things that legislature of SAR shall be constituted by elections. Vital coming period to have frank and informal dialogue with y ou to

discuss your and our ideas and how they can converge. Since it is

here that our ideas will crystallise before they are

put to London

very valuable for this to take place here (in addition of course any dialogue in

in Peking) Hope this talk will be beginning of that

dialogue.

in

un til

start

Our

we see how

from common

over

to

CONFIDEN TIAL

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