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that the broad direction which these provisions will take may by

then have become clearer, the prospects for a simultaneous emergence

of clear and compatible views in the BLDC and the Review exercise,

permitting an outcome in which neither side appears to pre-empt the

other, have diminished.

THE TIMING OF 1987 REVIEW

10. In the face of the above problems the following broad options

present themselves.

(A) RETAIN THE PRESENT TIMETABLE

11. If the present timetable is maintained it will demonstrate

clearly, both within Hong Kong and to outside observers, that HMG

and the Hong Kong Government are firmly in charge of the Government

of Hong Kong, that Government business is being carried on

effectively despite the death of Sir Edward Youde and that the

British side is dealing firmly with known Chinese misgivings about

the Review. The problems of timing referred to in paragrah 9

will however arise. There will be the maximum risk of

incompatability and hence of potential confrontation with the

Chinese side.

(B) POSTPONE THE REVIEW TO 1988

12. A significant postponement of the review, perhaps by a full

year, would in theory considerably improve the chances of achieving

compatibility between its outcome and the future Basic Law= The

death of Sir Edward Youde and the need to allow time for the new

Governor to settle in could theoretically be used as the reason for

a delay.

13.

However there is still no guarantee that the draft sections of

the Basic Law dealing with the political structure will have been

finalised or published even if publication of the White Paper is

deferred until the end of 1988. Moreover departure to this extent from the publicly announced timetable would provoke very serious

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