TNAG-2047-FCO40-2917-Visits-by-staff-of-the-Department-of-Trade-and-Industry-to-H-1990 — Page 9

CONFIDENTIAL

Constitutional Development

Introduction of 18 directly elected seats in legislature in 1991 will mark important step forward in development of democracy in Hong Kong.

Key point is that system now in place will be able to survive and develop after 1997. By 2003 50% of Legislative Council will be directly elected and by 2007 it could be

100%.

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Hope that in time Chinese Government will agree to

accelerate pace of democratisation.

to make a success of elections.

But first priority is

Hong Kong Air Services Separation

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Concerned about delays in Chinese consideration and approval of separated texts.

Have raised this with Chinese on a number of occasions,

eg during Mr Maude's visit to Peking in July. Will continue

to press for faster progress.

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- (if appropriate) Understand Swire's representatives have

also raised with Chinese. Appreciate Swires' efforts to bring home to Chinese Government the adverse impact of these

delays.

FABAMY/2

CONFIDENTIAL