TNAG-2991-FCO40-3566-Future-of-Hong-Kong-constitutional-development-1992 — Page 52

CODE 18-77

To: Mr Ricketts

CONFIDENTIAL

Miz M13 B12/2

Reference

6

Ref: con.devel

RELATIONS BETWEEN THE EXECUTIVE AND THE LEGISLATURE IN

HONG KONG

Magorela (46)

1. I have read your minute of 17 June on this with interest. I would offer the comments set out below.

2. I have long maintained that our real aim must be to maintain Hong Kong's economy. We (Ministers) can stand the political pressure of not furthering democracy. We could not stand the Armageddon scenario and the billions of pounds that would involve. With that in mind:

or

(a) The political system we have established in Hong Kong is fundamentally flawed. We have created a Legislative Council which can only take a stance opposite to that of the Executive. Because candidates know that they can never have real power even the appearance of power, no good, ambitious people with Hong Kong's interests at heart will stand. Instead, we shall have the pseudo-intellectuals, the social workers and those who are happy to make a name for themselves in critising the British Administration. We did this as a rod for the Chinese back- but it has rebounded on us rather more quickly than we expected.

/

(b) I do not think trying to appease people like Martin Lee will work. We have nothing real to offer him. He is not interested in running Hong Kong in the way we think it can in practice be run. He will pocket our advances and continue as before. If we are to maintain a grip on matters in Hong Kong I think we shall have to stay with the devil we know- the CRC.

(c) I believe the best we can do up to 1995 is to try and muddle through. My view is that by 1995 the Chinese will will have sown things up: there will be sufficient pro-China LegCo members for a smooth transition through 1997. How we cope with that, if we wish to take steps which do not coincide with China's wishes, is another matter.

(d) How to muddle through? I believe we need to give the senior (Chinese) civil servants their head and let them sort out how they deal with LegCo. A new, politically astute (in Hong Kong terms) Chief Secretary should be appointed to take the lead. The Governor should withdraw himself from day to day administration of Hong Kong and concentrate on convincing the people that matter that what HKG/HMG are doing is good. He

CONFIDENTIAL