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BACKGROUND

1.

The Background to the highly sensitive question of the future development of representative government in Hong kong is contained in my submission dated 19 December. At our meeting with the Secretary of

it was State and Mr Rent on on 21 December We agreed that we should seek an early opportunity for the Secretary of State to discuss with the Governor Hong Kong Government views on where and how for the 1987 Review should take us. Hong Kong have subsequently produced a comprehensive

useful paper on

consulted. (Part I of the

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issue, on which EXCO have been the paper explains Hong Kong's present system of government; Part II deals with the provisions of the Joint Declaration on the future structure of the Hong Kong SAR government, and the question of convergence with the Basic Law for the Hong Kong SAR, which will have to be taken into account in the 1987 review; Part III discusses a number of possible options for the main items which will need to be addressed in the 1987 review: the position and powers of the Governor, the composition of the Executive Council and its relationship with the Legislative Council, the composition of the Legislative Council and its function s and procedures.) The Governor's visit presents a good opportunity to explore with him his views on what the 1987 Review might contain, particularly in regard to the aspect that is of most concern to the Chinese

the possible introduction of direct elections to LEGCO.

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