TNAG-1877-FCO40-2668-Student-demonstrations-and-internal-political-situation-in-C-1989 — Page 81

MAXACL (4)

BACKGROUND

Reaction in Hong Kong

1.

Despite typhoon conditions, some 500,000 people demonstrated on 21 May in sympathy with the Peking Students. The numbers involved were considerably larger than those of any pro-democracy demonstrations that have ever taken place in Hong Kong.

Hang Seng Index

2. The Hang Seng Index fell by 300 points on Monday, recovered on Tuesday and fell by 256 points on Wednesday. These movements,

though substantial, are by no means a panic reaction.

Basic Law

3. Two Hong Kong members of the Basic Law Drafting Committee have resigned and the Basic Law Consultative Committee in Hong Kong has temporarily suspended work.

Development of Representative Government

In

4. In 1984 there were no elected members of the Legislative Council. Since 1985 almost half its members have been indirectly elected. 1991 ten directly elected seats will be introduced, and there will be scope for further changes before 1997.

5. The Executive and Legislative Councils have now proposed a faster pace towards the introduction of full direct elections to the Legislature in the period after 1997 than is currently envisaged in the present draft of the Basic Law.

Nationality

Б. Mr Renton confirmed publicly to the Foreign Affairs Committe on 24 May that it was not possible to give right of abode here to all 3.3 million Hong Kong BDTCs.