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venture into the unknown. Hong Kong is already more successful economically than many other nations or territories, including those of a democratic persuasion; I therefore repeat what I said last November, namely that the burden of proof rests with the reformers. Beyond extolling the virtues of "one-man one-vote" they have yet to demonstrate how a fundamental change in the political structure will allow us to do even better, will help strengthen Hong Kong's ability to attract funds and compete internationally, will stop emigration, or maintain the high
level of motivation of Hong Kong's working population. Political equality is wonderful but does not guarantee the weekly pay cheque. Neither media appeal nor fine speeches will produce solutions to the daily problems of governing this complex territory. The task for the reformers is made the more difficult because although we may not have a full set of democratic institutions, we nevertheless live democratically, have equality of opportunity, and our system provides for the protection of individual liberties and contractual rights. We do not need more "democracy" because we do not live in a society abused by authoritarianism, or in one struggling for more local self-government, or where one ethnic group seeks leadership over another, as is the case in some of our neighbouring
countries.
The political activists suggest that we must have democracy to better ensure that Hong Kong's interests will be fully protected after 1997 when the institutional restraints on the British bureaucratic government disappear with British sovereignty. I do accept as a valid argument that the future constitutional
ties to a socialist state will make it more difficult to base
any expectations of governmental restraint and the continuing respect for the rule of law and for individual rights and liberties on trust alone, as Hong Kong people have learned to do during the many decades of British rule, and that these should therefore find an anchor in Hong Kong itself. I also accept that this anchor should be forged through a strengthening of the representativeness of the legislature to allow it to exercise a restraining role on the administration. But I do strongly believe that direct elections, especially partial