CONFIDENTIAL

(j) CONSTITUTIONAL DEVELOPMENT

A number of Noble Lords have refeerred to the development

of democratic institutions in Hong Kong.

As the House knows the first indirect elections for part

of the Legislative Council will take place in September of

this year.

A further review of the developments will take place in 1987 in the light of the experience of the next two years. At that time the House and the people of Hong Kong will have another opportunity to express their views. I think that the general view of the House, and indeed

that of the people of Hong Kong, is that it is best to

proceed cautiously towards the fullest degree of

democratic accountability of the Executive.

CONFIDENTIAL

רי

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(k)

UNDERTAKINGS

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