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buffer between themselves and China. All of a sudden, the

political environment in Hong Kong becomes extremely complicated.

Politically speaking, the 1997 issue means the intrusion of new

actors into the local political scene, the spawning of new social

and economic problems, the appearance of new political conflicts

and the erosion of the authority and legitimacy of the colonial

regime. On top of all this are problems arising from changes in

the international economy and issues generated by Hong Kong's own

socio-economic transformations. These problems and issues have in

turn been accentuated by the 1997 malaise.

As a result of all these momentous changes directly or

indirectly related to the 1997 issue, the favorable conditions

which have all along facilitated effective colonial governance

have become weakened. While Hong Kong is far from ungovernable,

the maintenance of effective governance in the remaining years of

colonial rule has become problematic. The Hong Kong government is

not totally oblivious to its worsening predicament, but it has

been slow in reacting to it. In groping for a way out, it has

tried different tacks singly or in combination, but without

settling upon any to date. In its desperate effort to develop a

formula to assert effective rule, the government is caught in a

web of dilemmas. Nevertheless, the closer 1997 approaches, the

options available to the government will become more and more

limited. In all likelihood, the remaining options will narrow

down to some forms of power-sharing, authority consolidation and

consensus-building by the government, which end its monopoly on

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