TNAG-0281-FCO40-317-Visit-of-the-Chancellor-of-the-Duchy-of-Lancaster-to-Hong-Ko-1970 — Page 164

CONFIDENTIAL

Constituti on

miles) expires in 1997 and there is at the moment no

likelihood that it will be renewed. Without the New

Territories the Colony would not be a viable entity.

Hong Kong has little or no natural resources and its

economy depends entirely on the skills of its people

and on their ability to trade. External confidence in

the Colony's ability to maintain her position and pay

her way is therefore of vital importance.

4.

Although Hong Kong possesses a highly sophisticated

community and modern facilities of all kinds with a

buoyant economy the business of Government must be

conducted under a Crown Colony Constitution which provides

for no elected element in either the Executive or

Legislative Councils (see paragraph 5 below). The former

has a nominated unofficial majority and the Governor is

required to consult with it save where matters are

unimportant or too urgent. He may act contrary to the

advice of the Executive Council but in such cases must

report fully to the Secretary of State. The Governor

legislates with the advice and consent of the Legislative

Council which has twelve official and thirteen nominated

unofficial members. The Governor, as President, has an

original and a casting vote, thus maintaining an official

majority. There are the usual reservations to the Crown

of the power of disallowance and of the power to legislate

by Order in Council for the peace, order and good government

of the Colony.

5.

Introduction of the electoral principle into the

Legislative Council would inevitably import the politics

2 CONFIDENTIAL