World Notes HONG KONG

It would have been easy for China to give Hong Kong a much needed boost of confidence when it released the new draft of the Basic Law, which will govern the territory after Britain relinquishes control and Beijing takes over in 1997. The Hong Kong members of the drafting committee wanted nothing more than | a modest increase in the number of directly elected legislators after 1997. As it was, only 18 out of 60 seats were to be filled by open ballot. Since Tiananmen Square, however, Hong Kong's top priority has been to increase that allotment as a hedge against rule by Communist whim.

But with its members dominating the panel, China not only rejected any increase but diluted democracy further by giving extra weight to the votes of the indirectly elected legislators -- those chosen mainly by groups representing such constituencies as business, the professions and labor. Next month Hong Kong will have a last, slim chance to coax concessions from Beijing before the charter is promulgated in April.