TNAG-1220-FCO40-1530-Democratic-representation-and-reform-in-Hong-Kong-1983 — Page 103

SECRET

2

(c)

(d)

to form a separate New Territories Council,

with the same role and financial autonomy

in the N.T. as the Urban Council has in the

urban area;

to replace the Urban Council with three

Regional Councils.

(2)

Consultation

3.

The F.C.O. and Embassy, Peking have been informed

of the proposed review, and asked for their reaction to it.

They have commented that the Chinese will be very sensitive

to any suggestion of local government reform in Hong Kong,

which they may see as a device to frustrate and mobilise

opinion against the Chinese plans for the future; and

development of, or change to, the present arrangements will

therefore need to be handled very carefully. In particular,

the F.C.O. and Peking would prefer :

(a)

that no announcement was made of the

formation of a working party or group

(b)

and that the review should be a

confidential exercise;

that the possible options for change to

be considered should not be publicly

announced;

and

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/ (c)