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7.
If existing policy is to continue the new Governor would work with the grain of the present system ie he would rely in very large measure on the advice and actions of the
Hong Kong Administration, a large administrative system
composed of 180,000 civil servants, the majority of whom are Hong Kong Chinese. He would also continue to work through the Executive Council and the Legislative Council, the essential organs of government and legislation.
8.
Alternatively, the new Governor could be asked to follow a policy of exercising tight control over the Hong Kong Administration in all or most fields. The aim would be
to ensure that HMG had a firm grip, through the Governor, on the decision-making process so that London is fully informed of, and able to influence, all important actions and decisions, thus minimising the danger of issues suddenly arising which could create difficulties for HMG, especially in the on-going negotiations with the Chinese about
arrangements for the 1997 transition.
9.
In choosing between these two policies, Ministers will wish to have the following factors in mind. The whole trend of policy in recent years has been to move towards a situation where Hong Kong is run by the people of Hong Kong. This concept has underlain the steps to localise the Administration and to provide for direct elections to a proportion of LEGCO seats. Broadly speaking, the policy is popular in Hong Kong. Undue interference from London, especially in the areas of economic and financial autonomy,
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