1987 was fixed in order to achieve the desired outcome. They argue that the establishment of a fully democratic system in Hong Kong is the most effective safeguard against interference by China after 1997 and that the Government's reluctance to force the pace over the developoment of representative government is undermining confidence, particularly amongst the young professional classes in Hong Kong. This allegation of 'broken promises' cannot be sustained. The record shows clearly that we gave no undertaking in respect of 1988: we undertook only to hold a Review on the way forward in 1987 an undertaking which we carried out to the letter. The Review was fair and objective. Our decision to introduce an element of direct elections in 1991 was
based on our best assessment of the wishes of the community as a whole and on a careful judgement of what was best for Hong Kong, given all the circumstances. There is little doubt that this judgement has been endorsed by the majority of people in Hong Kong.
Hong Kong's High Degree of Autonomy
In practice the Hong Kong Government has enjoyed extensive autonomy for many years. We are now seeking wherever possible to formalize those arrangements so as to allow the Hong Kong authorities to exercise now the high degree of autonomy that Hong Kong is to enjoy after 1997. 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, as a separate contracting party to the GATT, has its own representation the GATT in Geneva. There are plans for similar representation to the EC. We are also encouraging the establishment of free standing Economic and Trade Offices in the capitals