5-

important middle and managerial classes to understand the nature and effect of the changes in Government structure which would be in prospect.

13.

The creation of a post of Deputy Governor would provide time and a focus for the constitutional and

legislative changes which must be made in order to provide for

the transition. It would accustom members of the Executive

Council, the Legislative Council and the Government service, first to the existence of the post and subsequently to the person of the Chief Executive (designate) before the

transition of Government took place. It would give the Chief Executive (designate) time to understand the processes of governing and to establish his authority. There is also

likely to be an increasing need in the more political

atmosphere of the 1990s for someone to take a lead in

presenting Government policies in the Legislative Council and

more generally in the public area. The Governor will not be able to perform this role.

14.

In principle the advantages of option (B) are

clear-cut. We need however to consider carefully the

implications for our relationship with China and our objective of securing the maximum influence over developments in Hong

Kong.

The Chinese dimension

15.

The introduction of a Chief Executive (designate) before 1997 could be achieved successfully only in agreement

with the Chinese Government. This would be not an abdication

of responsibility but a practical necessity. Such modifications to the Hong Kong Government structure would without doubt be "matters relating to the smooth transfer of

Government" on which the two sides are bound by the terms of

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