nature.

CONFIDENTIAL

Measures being taken by HMG

Human Righs

For our part, taking number of other measures to rebuild confidence in Hong Kong. Bill of Rights for Hong Kong, entrenching essential freedoms in single legal text, will be introduced as soon

as possible.

Representative Government

Also seeking to promote development of democratic institutions in

Hong Kong. But need to proceed at pace with which Hong Kong people feel comfortable, bearing in mind that there were no elected members

of Hong Kong Legislature of any kind before 1985. Hong Kong

consensus likely to settle on 50% directly elected seats in 1997.

Will have to try to persuade Chinese to put that in Basic Law

(current draft only provides for 27% directly elected seats in 1997). We will probably also need to do more in 1991 (when directly elected members will be introduced for full time) than we had

planned. This too could bring us into conflict with Chinese.

Contacts with China

Will be pressing Chinese to take concrete steps to help rebuild confidence eg in revising Basic Law to ensure that it meets Hong

Kong concerns

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Will resume contacts with Chinese on implementation of Joint Declaration at end of September. Does not indicate weakening of general condemnation of China, but recognises special position of Hong Kong and need to continue preparation for transfer in 1997.

CONFIDENTIAL

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