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DSR 11C (Revised 5/87)

prepared to listen to our views on the future political

structure. This is mildly encouraging.

In his discussions in Peking, I propose that the

Governor should emphasise our wish to see to the steady

and gradual progress in democratisation before and after

1997, in the interests of Hong Kong's continuing

stability and prosperity. He should make it clear that

if the Basic Law is to command confidence, it will need

to go considerably beyond what is currently envisaged

both as regards the proportion of directly elected seats

and in the other areas indicated above.

On 1991, he should tell the Chinese that we do not

intend to make an announcement during my visit to Hong

Kong; but that it is our considered judgement that it

would be extremely difficult politically in Hong Kong,

given the movement of opinion over the past 18 months,

to have less than one third of the seats directly

elected in 1991. He would add that, as the Chinese know

from Sir Percy Cradock, we have been under very great

pressure to announce 20 seats. We must recognise that

the Chinese are unlikely to react favourably to such an

approach, which takes little account of their own

concerns, But if they held out the prospect of major

improvements in the Basic Law, in return for a degree of

restraint on our part in 1991, the Governor would clearly

have to undertake to report. We would then need to

consider very rapidly what our response should be.

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