TNAG-2987-FCO40-3573-Future-of-Hong-Kong-constitutional-development-talks-betwee-1992 — Page 27

CONFIDENTIAL

DESKBY

- It would not be realistic to expect the Governor to delay his speech or to omit his proposals on constitutional development. There is high public expectation in Hong Kong that the Governor

will use his speech on 7 October to set out his conclusions following the wide consultations he has held since arriving in Hong Kong. The Chinese side have frequently urged us and the Hong Kong Government to publicise proposals, for example on the airport, and to listen to the views of Hong Kong people. This is

what the Governor will be doing with his constitutional

proposals

The decisions he will be announcing on the composition and role of ExCo, and the relationship between the Government and LegCo

reflect his and the British Government's best judgement of what

is needed to maintain effective executive-led Government at this

stage of Hong Kong's political development. These changes will

not commit the future Chief Executive and SARG who might reach

different conclusions. They also take account of Chinese

concerns about the appointment of certain personalities to ExCo:

- In his speech the Governor will state clearly that we will be

discussing the issues relating to the 1995 elections with the

Chinese side. In developing them, the Governor and the British

Government have paid careful attention to the terms of the Joint

Declaration and the Basic Law. As the Chinese side know, we

favour a change in the Basic Law to permit an increased number of

directly-elected LegCo seats in 1995. With that sole exception,

all the Governor's proposals are consistent with both the spirit

and the letter of the Basic Law.

We cannot agree that the Governor is making too many

unnecessary changes. If stability and prosperity are to be maintained, he must be responsive to Hong Kong opinion. There is no doubt that Hong Kong people want a greater measure of

democracy,