CONFIDENTIAL
a supportive line. However the general picture remains surprisingly good. Nonetheless we need to work at bolstering HKG's authority. The Prime Minister may therefore wish to show public appreciation of, and confidence in, the work of the Governor and senior
members of the Hong Kong Civil Service. (See also the defensive line below on Civil Service concerns.)
LegCo Elections
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The campaign is underway for the elections to LegCo on 12 and 15 September, when for the first time 18 (out of 60) seats will be directly elected. The United Democrats, under the lawyer Martin Lee, look likely to win 15 20 of the total 39 directly-elected and indirectly-elected seats. They are critical of many aspects of Hong Kong Government policy (eg they favour full democracy immediately) and highly critical of China on human rights issues. Peking is suspicious of and hostile to them. There is also some anxiety, both in Hong Kong and business circles, that the new LegCo will make life more difficult for the Government and that, if not managed responsibly, it could undermine confidence
more generally.
We remain committed to trying to persuade the Chinese to accept a faster pace of democratisation than currently provided for under the Basic Law, (ie 20 seats in 1995/97, 24 in 1999, 30 in 2003 and the possibility of full direct elections in 2007). But it would be
counter-productive to press for change before the 1991 elections and before the new LegCo has settled in.
CONFIDENTIAL
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