TNAG-1437-FCO40-1921-Constitutional-development-in-Hong-Kong-1986 — Page 55

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China has promised the 5.5 million residents of

Hong Kong (who will be 6.5 million by 1997) a high degree of

autonomy under the "Hong Kong People Governing Hong Kong"

concept.

This should be a great challenge to local leaders

who have the interests of Hong Kong at heart. But it is

important that all parties concerned be patient and

understanding, restrained in language and persistent in

effort.

It will be advisable for both the British and

Chinese Governments to avoid any misunderstandings of purpose

or motive as the phased development of Hong Kong's political

structure takes place, which will transfer power from a

colonial power structure to a "Hong Kong People Governing

Hong Kong" structure acceptable to China and operating under

the "One Country Two Systems" concept.

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There is some concern that if the powers of the

Governor in Executive Council are transferred to the

Legislative Council, the political situation could be

destabilized. We must be careful not to confuse the

functions of the Executive and Legislative Councils which are

clearly distinguished in the Joint Declaration.

avoided by:

I am of the view that this can certainly be

Firstly, the British Government retaining its

(1)

reserve powers until 1997;

/(2)