N.B.

6.

indication that we envisage for the Colony a future and a

status other than its eventual re-incorporation into China.

Passages in square brackets not for public use.

It can be said publicly that we are always considering what

means there are of broadening the basis of the Legislative Council

within the framework of the existing system of government.

(For the Secretary of State's information

correspondence is going on

with the Governor at present on the possibility of widening the field

of nomination to the Legislative Council.)

7. There are dangers because of the unsettling effect in Hong

Kong and deductions which may be drawn in Peking if a member of the

Opposition front bench says anything about elected representation or

advance towards self-government in Hong Kong. The Secretary of State

may wish to have a word with Mr Bottomley before the debate about the

need for care in talking of this. Ir doing so, he might find it

helpful to refer to the very guarded statements of r Healey, MP, at

his press confer cnoe in Hong Kong on the 21st September, reproduced

below:-

(i) "There is scope for movement, if not for a complete change

of direction, in the administration of Hong Kong

I would hope to extend the range of groups from which the

Government takes its advice."

(ii) Asked if this implied some form of representation, he replied:

"Not necessarily at this stage

I have a nasty feeling

Squatters and

Housing.

11

that perhaps to have direct elections to organs having power

hight inevitably lead to a struggle between the two externally

influenced groups and upset existing stability."

8. We understand that Mr Bottomley will refer to the problem of

'squatters" (whom ho may refer to as "settlers.") These are

immigrants from China who, for lack of housing and resources, have

settled in shacks and huts on vacant land (even on roof-tops of

tenements.) Settlement by squatters in unsuitable areas has followed

the large intake of inmigrants in 1962 (estimated at about 140,000) Page 306 of 344

Page 306

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age 307 of 344

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