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BACKGROUND

1.

In November 1984 the Hong Kong Government published a White

Paper entitled "The Further Development of Representative Government

in Hong Kong". The Paper, which was endorsed by the Hong Kong

Legislative Council (LEGCO) in January 1985, proposed:

(a)

(b)

an increase in the number of Unofficial members of

LEGCO and a decrease in the number of official

civil servant) members;

(ie

the selection of 24 of these Unofficials by indirect

elections

based

constituencies; and

on

geographical and

functional

(c)

2.

a further review of developments towards more

representative government, including the possibility of

direct elections to LEGCO, in 1987.

While they have not objected to these developments a s

such,

the Chinese have expressed considerable concern through formal and

informal channels over the extent and pace of further constitutional

development in Hong Kong between now and 1997. A particular point

of Concern to them is

whether developments arising from the 1987

review will preempt their plans for Hong Kong' $ Government structure

post-1997, which will be embodied in the Basic Law that they are now

drafting.

3.

The HKG is committed to considering the issue of direct

election in 1987, and there is already a vigorous public debate in

Hong Kong as to whether these will in fact

fact be introduced. We have

sought in our senior official contacts with Chinese leaders to

explain that we are committed to a full review in 1987, which must

include the issue of direct elections, but that no decisions have

been taken on what if any reforms should be introduced following the

review.

The Secretary of State reiterated these points to the Chinese Foreign Minister in their meetings in the margins of the State Visit to China between 12 and 18 October.

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