TNAG-0848-FCO40-1058-Future-of-Hong-Kong-New-Territories-leases-1979 — Page 51

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and must be free, where they think necessary, to run their own institutions in parallel with those operated by the Government (eg schools, though there are some signs that the Communist schools in Hong Kong are ready for closer co-operation with government); and Chinese enterprises (eg banks and trading companies) must be

free to establish themselves and operate without hindrance. Within this broad framework, which is unlikely to change significantly over the next ten years, the Chinese have been content for Hong Kong to be administered on traditional colonial lines and have seldom sought to influence the Hong Kong Government's purely domestic policies. However, Chinese attitudes, and the uncertainty about the future, do in practice impose certain constraints. The following paragraphs seek to identify some of the specific problems which may arise over the next ten years and to assess how much flexibility we are likely to have in dealing with them. Institutional developments

12. It has always been assumed that because the normal path to independence is blocked the form of government in Hong Kong must remain non-representational. Generally speaking, this assessment is likely to remain valid: it is difficult to imagine the Chinese

being prepared to tolerate a democratically elected Government in Hong Kong with full responsibility for internal affairs. Neverthe- less, as time goes on it is likely to become increasingly embarrassing for the British Government to have to defend in Parliament the

maintenance of a paternalistic, oligarchic and essentially undemocratic system of government, particularly if there were significant pressure for more democracy among the people of Hong Kong. At present the great majority of the people seem mainly interested in assured employment, a rising standard of living, protection from violent crime, decent housing, good education and health services and adequate social welfare. Such evidence as we have suggests that they are generally satisfied with (or indifferent to) the present form of government: the individuals and organisations who now advocate democratic reforms

appear to have little public support. But we cannot take it

for granted that this state of affairs will continue indefinitely.

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