CONTIDENTIAL

MEETINGS WITH AT LEAST MAJORITY SUPPORT FROM THE COUNCIL. IN

COMPOSITION THE EXECUTIVE COUNCIL IS, WITH ONE OR TWO EXCEPTIONS,

THE SAME COUNCIL WITH 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 FCC. 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 TAKEN

BEFORE 1997. (THE JOINT DECLARATION 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 THE 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 TAKEN TO PREVENT A DEIVERGENCE

BETWEEN THE SYSTEM WHICH IS EVOLVING IN HONG KONG AND THAT

WHICH THE CHINESE CAN BE EXPECTED TO WRITE INTO. 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

ONE OF THE SPECIFIC PURPOSES OF HMG IS PASSING THE NATIONALITY

ACT IN 1981 WAS TO SHUT THE DOOR AGAINST HONG KONG CHINESE

STILL RUNS DEEP. THERE IS GREAT ANXIETY ABOUT THE REAL VALUE OF THE NEW BN (0) PASSPORT: AND FEAR THAT IT WILL BE REGARDED WITH

GREAT SUSPICION BY IMMIGRATION AUTHORITIES OF THIRD COUNTRIES.

THERE IS LIKELY TO BE STRONG PRESSURE FOR AN ASSURANCE THAT HMG

WILL INSIST ON A FORMULA WHICH WILL DECLARE IN THE PASSPORT THAT

THE HOLDER HAS THE RIGHT OF ABODE IN HONG KONG AND WILL NOT BE

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CONFIDENTIAL

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