22.
SECRET
b) On labour legislation I am confident of maintaining progress provided items are supported by the Labour Advisory Board. But there will be constant suspicion as to whether changes are really intended for the benefit of workers in Hong Kong or rather to meet United Kingdom pressure. There will also be natural concern that Hong Kong should not erode her competitiveness in comparison to Singapore, Taiwan and Korea. This is not just a matter of profits, but of investment, employment and the viability of the economy.
c) I am confident of being able to broaden the base and increase the size of Legislative Council. It will be necessary to undertake intensive personal persuasion in the next few months, but I am sure it can be done.
d) I foresee more difficulty over subsequent introduction of a 'Member System". Much will depend on how quickly the new Legislative Council shakes down, and whether in the light of experience the reform of the Council is resented or accepted by the more experienced members. About this I am fairly optimistic, but there may be real difficulty in persuading the right men and women to move on from this and accept public responsibility.
I or my successor will depend very largely on what support and encouragement the senior members are prepared to give. So far I have only discussed this ultimate move with Sir Y.K. Kan. But provided members are content with
the general policies of government I should expect the necessary people to be forthcoming.
IS IT POLITICALLY VIABLE IN THE UNITED KINGDOM?
44.
This is rather outside my field, but I am convinced that the key lies in mutual under- standing.
45.
I believe that the work of the Anglo/Hong Kong Parliamentary Group, and the programme of visits of M.P.s under its auspices are increasing knowledge of what the Hong Kong Government is trying to do and why it is confronted with the problems that
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