CONFIDENTIAL

functional constituencies was made in 1985. In February 1988, the

Hong Kong Government announced that a directly elected element would

be introduced for the first time in 1991 when 10 seats would be

directly elected. It became clear subsequently that people in Hong Kong favoured a more rapid rate of progress as regards directly elected seats, while continuing to attach importance to a system

which could endure and develop after 1997. The consensus which

OMELCO reached in July 1989 about the right pace of constitutional development up to 1997 was in fact much less ambitious than the

Committee's recommendation.

13. In order to achieve steady progression up to and beyond 1997, it was essential that the system introduced in 1991 should be developed and carried forward in the arrangements set out in the Basic Law. With that objective in mind, the Government entered into

a series of tough discussions with the Chinese authorities about Hong Kong's future political development, stressing the importance of a more rapid process of democratisation than was envisaged in the

second draft of the Basic Law and the need to ensure that the

political system as a whole was one which Hong Kong people would find acceptable. On 16 February 1990 the Foreign and Commonwealth

Secretary announced the Government's intention to introduce 18

directly elected seats in 1991 and at least 20 in 1995. This is a substantially greater first step towards full democracy in Hong Kong than was planned two years ago. It is two seats less than the proposals put forward by OMELCO in July 1989 but significantly more than the 10 seats which were originally envisaged in 1988. As a result of the Government's representations and those of people in Hong Kong to the Chinese authorities, the final version of the Basic

Law provides further progression from 1997 onwards, rising to 24

seats in 1999 and 30 seats (fifty per cent of the legislature

remainder being indirectly elected members) in 2003, with the

possibility that full direct elections could be introduced in 2007. The Government hope that in time the Chinese Government will agree to accelerate the pace of democratisation.

14. Most people in Hong Kong welcome the fact that a clear

the

CATAAU (6)

CONFIDENTIAL

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