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representative government. However the past two or three years have seen the emergence of a more political element in the Hong Kong community, who criticise what they see as a perpetuation of undesirable colonial features in the present

system of Government. They have taken the lead in demanding a faster pace of constitutional change and in particular an element of direct elections to the Legislative Council in 1988. The proponents of these ideas are at present a minority, but they are a very vocal one whose views are given widespread coverage in the media. On the other hand the

introduction of direct elections would increase nervousness

among the business community and in many other parts of society.

31. We cannot predict with any certainty how the views of the people of Hong Kong on the issues to be covered in the

1987 Review will develop. Direct elections for a number of

seats in the Legislative Council will be the most

controversial issue, and given the deep divisions that already

exist it is likely that no clear consensus on this subject

will emerge.

It will undoubtedly be much more difficult than

in the past to reach a decision that will be acceptable to the majority, including the less vocal elements in Hong Kong

society.

32. The situation is complicated by the fact that the

known Chinese opposition to direct elections has caused many people in Hong Kong to support their introduction in 1988 not for their own sake, but as a symbol of Hong Kong's ability to acquire and retain the "high degree of autonomy" promised in

the Joint Declaration. This factor is so significant that in

the view of the Governor of Hong Kong if some element of direct elections is not introduced in 1988 there is likely to be among many people in Hong Kong a substantial reduction in confidence in the willingness of HMG to resist Chinese pressure, in the willingness of the Chinese to concede true autonomy to the Hong Kong SAR and in the credibility and

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