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thereafter, 18 directly elected seats (out of a total of 60) were

introduced into the Legislative Council in the Autumn of 1991, this

number to rise to 20 in 1995. None of this meets the aspirations now

aroused among the most enthusiastic proponents of democracy.

It has,

however, led to

to the establishment of political parties to fight

elections for the first time in Hong Kong's history. The Bill of

Rights was enacted in [late 1991?). All this greatly disturbs China.

She expected to inherit a traditionally politically quiescent Hong

Kong and now finds that she will be taking on something rather

different.

14.

Meanwhile, the rate of emigration from Hong Kong increased in

1990, as a direct result of the events on the mainland, from a recent

annual rate of some 40,000 to 60,000. Most of these people are from

the business, commercial and professional classes who make Hong Kong

function as it presently does. Some are essential workers from the

public sector and the latter in particular, as members of the Services

who will have to change their allegiance to the Government of the SAR

1 July 1997, may have an increasing problem with the maintenance of

morale.

15. To add to these ingredients for a potentially difficult last five

and a half years of colonial administration, there is a growing suspicion in the Territory of British motives in her dealings with

China over Hong Kong. This was seen, for example, in 1989 in demands

for the work of the JLG to be open to public scrutiny.

If this were

to develop into anti-British feeling as 1997 approaches, it would have

implications for the British Garrison, as the most obvious example of

British presence and interests in the Territory. In addition, there is scope for the interests of HMG and the HKG to diverge as, for example, they seemed to do for a time after Tiananmen Square on the

question of British Nationality and Vietnamese Migrants. The latter

are a further destabilising factor which Hong Kong could well do without as it approaches 1997; widespread opinion in Hong Kong during the period of very high arrival rates in 1989 was that the Garrison

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