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investors, on the other hand, are increasingly incredulous. Too
keen to project an image of decisiveness and competence even when
objective conditions would counsel otherwise, the intransigence
of the colonial government itself is part and parcel of the
problem of 'ungovernability' in Hong Kong.
Objectively speaking, there are two categories of options
available to the Hong Kong government to deal with the problem of
governance in the remaining years of its rule. The first category
involves the government to rely solely upon itself to exercise
authority. The second category comprises those strategies which
it can use to expand the authority it can practically deploy by
allying itself with other political authorities, particularly
China. Since the signing of the Sino-British Joint Declaration,
the government has tried various options or a mixture of them,
but there doesn't appear to be a consistent line of action. One
thing however is clear: as far as possible the government favors
an option or a combination of options which would provides it
with the highest degree of decision-making autonomy.
Unlike decolonization in other British colonies, the colonial
government is not going to transfer power to the local people.
Nor is there any strong demand of the Hong Kong people for the
devolution of power to them. Under the Sino-British agreement,
Britain is to maintain its rule over Hong Kong up to 1997, then
the territory will be reverted to China. China opposes any
attempt of the British to transfer power to the local people, for
fear that it will deprive Chinese sovereignty over Hong Kong of
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