CONFIDENTIAL

7. ALSO NEED TO CONSIDER POSSIBLE CHANGES IN RELATIONSHIP BETWEEN

EXECUTIVE AND LEGISLATIVE COUNCILS, ESPECIALLY POSSIBLITY OF A

MINISTERIAL SYSTEM.

3. LAST KEY ISSUE IS THE POSITION OF GOVERNOR AS PRESIDENT OF

THE LEGISLATIVE COUNTIL.

PUBLIC REACTIONS

9. WIDE SPECTRUM OF OPINION AMONG ARTICULATE GROUPS, E.G. LEGAL, PRESS AND SOME PRESSURE GROUPS, FAVOUR SUBSTANTIAL MEASURE OF

DIRECT ELECTION. SOME FAVOUR WHOLLY DIRECTLY ELECTED LEGCO.

SMALL BUT POWERFUL GROUP OF BUSINESSMEN OPPOSE DIRECT ELECTIONS.

10 SOME SUPPORT, INCLUDING AMONG PRESENT UNOFFICIALS, FOR

MINISTERIAL SYSTEM, BUT THIS AND OTHER KEY ISSUES NOT YET EXTENSIVELY DEBATED. WIDESPREAD BELIEF THAT ADVERSARIAL POLITICS

AND PARTY SYSTEM LIKELY TO BE BOTH HARMFUL TO HONG KONG AND

UNACCEPTABLE TO CHINESE GOVERNMENT.

+

11. CHINESE GOVERNMENT HAS MAINTAINED NEUTRAL INC OBLIGATION**

STANCE TOWARDS REFORMS. FORMAL POSITION IS THAT FUTURE STRUCTURE

OF GOVERNMENT IS FOR BASIC LAW TO DETERMINE PUBLIC AND PRIVATE

WARNINGS BY LOCAL PRC REPRESENTATIVES DESIGNED TO DISCOURAGE

HMG/HKG FROM GOING TOO FAR TOO FAST, AND TO DISCOURAGE LOCAL

POPULATION FROM ASKING FOR TOO MUCH.

12. HOWEVER, SOME SIGNS THAT LOCAL PRC REPRESENTATIVES APPRECIATE

THAT HMG/HKG REFORMS AND EVOLUTION OF BASIC LAW CANNOT BE

PURSUED IN WATERTIGHT COMPARTMENTS. REAMINS TO BE SEEN HOW

COMMUNICATION WILL BE ESTABLISHED, AND HOW FAR THE CHINESE MAY

BE PREPARED TO ACCEPT AS A FAIT ACCOMPLI CHANGES ALREADY MADE.

YOUDE

LIMITED,

HICD

FED

Wilso

CONFIDENTIAL

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