will be vulnerable to arbitrary political decisions taken on a whim-a sure recipe for a collapse in confidence and a powerful deterrent to investors from overseas.
108. So democracy brings benefits as well as representing values. It helps to create the sort of society, as well as the business opportunities that first attract talent and capital to Hong Kong and then retain them here. Above all, it provides a well-tried system for a mature and sophisticated people to have a say in how their community is run, and to tell those running it without fear where and when they have got it
wrong.
THE EXCO-LEGCO RELATIONSHIP
109. In tackling constitutional development, there are some things we can change immediately in order to strengthen our representative institutions. Other improvements are longer term and relate principally to the 1995 elections. These will require discussions with the Chinese Government. They will also need to reflect the views of the community and to win the support of this Council.
110. Let me begin with those things we can and should do straightaway. My intention is to ensure that we have vigorous and effective executive-led Government that is properly accountable to this Legislative Council. I believe that at the present stage of our political development, there is a danger of confusion and muddle in their roles which will both undermine the competence of the Executive and inhibit the effective development of the Legislature as an independent check on Government.
111. Hong Kong has come a long way in constitutional terms in the last year. But, as I have implied, this political development has cast doubt on the relationship between the Executive and Legislative Councils. That is hardly surprising. Since we have now embarked on the task of creating a wholly-elected Legislature, that has implications for the role of the Executive Council. However, we should not lose sight of our principal task. As the Joint Declaration and the Basic Law both make plain, it is the Legislature which is the main constitutional element that must be developed. That is, therefore, my major concern.
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