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FROM: D H Gillmore

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W37 270 2156

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20 January 1987 Mr Hum, HKD

16

PS/Mr Renton

REGISTRY

29 JAN 1987

[HONG KONG: ANNUAL REPORT TO PARLIAME

1.

This is an excellent report. It is longer than last year's but I see no harm in this; there is a good story to tell, not only on progress towards 1997 but also on the vitality and resilience of the Hong Kong economy and the Government's prudent and effective management.

2.

I have only one minor quibble. A layman might find the reference to the various Councils in paras 21-24 a little confusing. I suggest therefore that paragraph 23 should start as follows: "The Municipal Councils, comprising the Urban and Regional Councils, are financially autonomous

3.

...

ST

Much of the paper, as Mr Hum points out, was drafted in Hong Kong and has been extensively reviewed by all parties concerned, including Exco. I therefore agree with Mr Hum's recommendation that Ministers should approve its publication.

D H Gillmore

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