during her visit.

CONFIDENTIAL

[IF RAISED]

I can confirm that reports have appeared in Hong Kong newspapers suggesting that Hong Kong people will participate in the Committee

drafting the Basic Law, perhaps including Hong Kong Government

officials and UMELCO members. They add that a proposal is expected

to be put to the Chinese National People's Congress at the end of

this month, which will also consider whether a consultative

Committee should be established.

It will of course be for the

their

Chinese government to announce when it i s ready what arrangements it

intends to make. But HMG for

part would welcome as full a

participation by Hong Kong people as possible.

Introduction of Direct Elections

7.

in

Public comment on proposals contained in the Green Paper

published in Hong Kong in July showed little evidence of support for

introduction of direct elections

immediate future.

People

recognise need to ensure that Hong Kong's stability and prosperity

are not put at risk by introducing too many

many constitutional changes

too rapidly. Further consideration will be given to question in

1987 review.

District Board Elections (7 March 1985)

8. In the recent elections for Hong Kong's local District Boards,

213 seats were contested by nearly 500 candidates, and over 476,000

people voted. This represents an increase of almost 134,000 over

1982. It is a very

the number who voted in the

first elections

in

satisfactory result, and an encouraging indication

support in Hong Kong for the

of popular

steps that are being taken to develop a

more representative system of government there.

TS Lo resignation from EXCO

9. Mr T S Lo resigned from the Executive and Legislative Councils

with effect from 12 February. This is a personal matter for Mr Lo.

[IF IT IS SUGGESTED THAT THE RESIGNATION WAS IN PROTEST AT THE

AGREEMENT]

I am not aware of any criticism of the agreement by Mr Lo.

CONFIDENTIAL

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