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CONFIDENTIAL
M 1 (Cont'd)
6.
The Governor was asked if the negotiations would be affected by US/China relations. He thought that there would be no major effect, but if China thought that the US policy was seeking to keep Taiwan out, they would be very concerned. Hong Kong continually stressed the close cooperation between Hong Kong and China, and could not benefit by moves to divide China.
7.
A further question concerned Chinese assertions over sovereignty and whether an elected autonomous Government could administer Hong Kong. The Governor said that Hong Kong had avoided simple elections, which could be interpreted as leading to independence. Chinese statements had taken
the line that the Hong Kong systems would continue as before, after the reversion of sovereignty to China. But the Chinese had not been specific on how the systems would be successfully continued, possibly because they had not thought out e.g. what made a free economy work and how the HK Dollar operated.
8.
The Governor was asked whether an elected Legis- lative Council might remove pressure for an alternate Governor. The Governor said that the development of elected District Boards and Urban Council elections had caused no problems. It would be difficult to develop simple elections as this would create party factions with the attendent danger of the minority party wishing to ingratiate itself with China. But there was scope for a more structured representation in LegCo, and generally of greater public participation in Government.
(G A Higginson) PS/GH 9.3.83
CONFIDENTIAL
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