TNAG-2119-FCO40-3025-Future-of-Hong-Kong-general-1990 — Page 97

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consolidation of political authority is much more important and

urgent. Due to the erosion of the favorable conditions for

effective governance by the colonial government, it does not have

the necessary means to enhance its authority. What is the more

likely outcome is an expanded political authority comprising the

Hong Kong government, the Chinese government and the moderate-

conservative leaders. In the process of formation of the allied

authority, there will be a diminution of the autonomy of the

colonial government, an enlarged involvement of China in local

affairs and a joint effort between them to develop local leaders.

However, the establishment of an allied authority is bound to be

afflicted with difficulties and strains among the three parties,

which might occasionally aggravate the conflicts already existent

in Hong Kong.