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Concessions to the Chinese on this issue will only serve to

undermine confidence.

It would be quite wrong to see the decisions to be announced in

the White Paper in this light. The decisions will be taken in the light of what is best for Hong Kong. Changes which command the

support of the widest possible consensus of opinion in Hong Kong,

and which offer the best prospect of continuity after 1997, can only

help to strengthen confidence.

Direct elections in 1988 essential to increase accountability of

Hong Kong Government

The Hong Kong Government is already accountable to the people of

Hong Kong in many ways. The June Declaration provides for this to

continue. There is already a significant degree of representative government through the Urban and Regional Councils, the District

Boards and the network of advisory committees. The composition of the Legislative Council reflects the widest possible range of

interests. In addition a Commissioner for Administrative Affairs is

to be established to provide a further channel of communication

between the people and the Government.

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