CONFIDENTIAL

stead and deliberate, in line with the wishes of the

community as a whole. Indirect elections to LegCo were

introduced in 1985; and a comprehensive review of public

opinion on the subject of constitutional change was held

in 1987, as we had promised in our White Paper of 1984.

That review showed that while most people wanted a

directly elected element in the legislature, opinion was

sharply divided over the timing of this. Our decision to

hold direct elections in 1991, although criticised by

some people, was mostly welcomed in the territory. There

is moreover scope for further changes in 1995. We have

succeeded in getting the Chinese to accept the need to

enable those members of LegCo elected in 1995 to serve

across the change of sovereignty in 1997, in the

interests of continuity and confidence (details are

contained in Annex III). There is thus the prospect of a

smooth and steady evolution towards fully representative

government in Hong Kong at a pace which is in line with

what Hong Kong people want.

Hong Kong's High Degree of Autonomy

10.

Wherever possible we are allowing the Hong Kong

authorities to exercise now the high degree of autonomy

that Hong Kong is to enjoy after 1997 as provided for in

the Joint Declaration. The Hong Kong Government manages

most of its internal affairs by itself, while keeping HMG

generally informed. Hong Kong also exercises

full autonomy in external trade matters and has its own

separate representative to the GATT in Geneva.

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