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Council

at

(EXCO). The Executive Council advises the Governor on all

major issues of policy and, although technically the Governor has

the right to reject their advice, in practice he does not do so and

a decision on such issues is

taken during the Council meetings with

least majority support from the Council. In composition the

Executive Council is, with one or two exceptions, the same Council

which was in office during the negotiations on Hong Kong's future.

Some of its members, led by the Council's Senior Unofficial member,

Sir S Y Chung, visited London on a number of occasions for

discussions with the Prime Minister and the Secretary of State, and

other Ministers in the FCO. The Council will expect an assurance of HMG's continuing commitment to Hong Kong, and be interested to hear

from Mr Renton HMG's view of the developing relationship with China,

particularly on Hong Kong matters, the work of the Joint Liaison

Group, and on any parliamentary trends of opinion likely to effect

Hong Kong's interests.

5.

The opening of the new Legislative Council (LEGCO) will focus attention on the development of representative government in Hong

Kong and on HMG's view of the likely outcome of the review in 1987.

There certainly will be questions on what attitude HMG will take

towards direct elections to LEGCO in 1988 and how far HMG believe

the process of creating fully elected LEGCO can be tak en before

1997. (The Joint Declaration provides for

provides for the Hong Kong SAR after

1997 to have an elected legislature.) There will be questions on

whether HMG would favour particular forms of development such as

creation of political parties or a ministerial system.

(No

conclusions on such issues will be reached until public opinion has

been consulted in the 1987 review.)

6.

There will also be interest in whether HMG will consult the

Chinese Government on the development of representative government:

and in the steps which will be

be taken to prevent a divergence between

the system which is evolving in Hong Kong and that which the Chinese

can be expected to write in to the Basic Law which will take effect

in 1997.

7.

The most immediately contentious issue, at least among a highly

vocal minority, will still be that of nationality. The feeling that

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