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CONFIDENTIAL

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Two governments

of the other, as

Hong Kong governed by Hong Kong people. obviously aware of concerns and views well as views of people of Hong kong. Am confident that a smooth transfer of government will be achieved in 1997.

4.

some

(LEGCO, Powers and Privileges Bill). Recognise that clauses proposed gave rise to strong feelings. Bill, as you know, was subsequently modified. Views of all sections of community on Bill tak en into account before it was passed. Passed by LEGCO unanimously.

5.

we

i s

to

went

This

(Direct elections) Overriding need, when consider development of representative government, maintain Hong Kong's stability. LEGOO elections well, and we must now see how the new LEGCO works. will provide us with a basis for considering what should be done in 1988. Understand that s ome are keen to see direct elections now, and their views will be tak en in account along with those of all others in 1987 review. No doubt there will be much public

public discussion in the meantime, and this is healthy.

6.

(Political Parties, Ministerial

system) Views on

these and other issues will no doubt be tak en into account in 1987 review. Must proceed carefully and stage by stage, considering views of all shades of Hong Kong opinion.

7. (Right for LEGCO to debate Basic Law?) A matter for LEGCO to decide. But drafting of Basic Law for China.

CONFIDENTIAL

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