TNAG-2450-FCO40-3567-Future-of-Hong-Kong-constitutional-development-1992 — Page 9

SECRET

OPD (K): 15 SEPTEMBER 1992

POINTS TO MAKE

[The Prime Minister will no doubt first ask the Governor to

present his proposals to the Committee]

(Introduction)

As my minute makes clear, I have discussed the Governor's

proposals with him and support them.

(Handling at Westminster)

There is bound to be some criticism from our own benches, as

well as the Opposition, that the Government has not made a

firm commitment to increase the number of directly elected

seats.

- But provided we get a supportive response to the Governor's

alternative approach from the middle ground in Hong Kong, including at least some liberals, this should be manageable.

In that situation, the strong political points for us will be:

(i) The Governor's proposals are a major step forward on

democracy (transformation of functional constituencies; democratically elected Election Committee) and are widely

seen as such in Hong Kong.

(ii) They maximise the chance of continuity after 1997 by

sticking within the terms of the Basic Law.

(iii) They are not a slippery slope to an unsatisfactory outcome, but a package which forms a coherent whole and

will be discussed with the Chinese as such.

opd(k).NIG

SLM

SECRET

FONTS

TO MAKE