THE House of Commons Foreign Affairs Committee (FAC) is holding informal hearings in the territory. The nine-member delegation, led by Tory MP David Howell, will conclude its four-day visit tomorrow. It is part of an inquiry into relations between the United Kingdom and China in the period up to and beyond 1997. In June 1989, the FAC published its second report on Hong Kong, just three weeks after the June 4 massacre in Beijing. In it, the FAC recommended speeding up the pace of democracy and giving full British citizenship to 30 war widows and the non-Chinese ethnic minorities. This was rejected by the British Government. Instead of sticking to their laudable position on democracy, there are signs the FAC may back down and support the British Government's inadequate compromise proposals on constitutional reforms. In the 1989 report, the FAC said 50 per cent of the Legislative Council should be directly elected in 1991 and the entire Legco should be directly elected in 1995. When I meet the FAC tomorrow with members of a Lobby Group, formed in the late 1980s to demand a fully directly elected Legco, I shall urge the FAC not to abandon its original stance. The FAC's arrival coincides with what many Hong Kong people hope will be the final phase of the Sino-British negotiations on the 1994-95 elections. Since the Governor unveiled his constitutional reform proposals last October, the Chinese and British governments have wasted an entire year in fruitless and acrimonious negotiations. An increasing number of Hong Kong people are fed up and would like to see the talks concluded and that they be given a say on their own future. This mood should not be lost on the FAC. Legco members' feeling of anguish and frustration boiled over at a meeting on October 12 with the Foreign Office Minister with special responsibility for Hong Kong, Alastair Goodlad, in which he told legislators virtually nothing. ''Minister,'' I said to him after one hour of futile exchanges, ''do you remember the last time a Foreign Office minister was boycotted by a colonial legislature? If you don't, would you like to be the first one?'' Both United Democrat James To and I were especially indignant with the British Government's refusal to waive residence requirements for British citizenship for the 20-odd ageing war widows and for refusing citizenship to the non-Chinese ethnic minorities. To many Legco members, London's miserly attitude breeds revulsion and contempt and has done enormous harm to Hong Kong-British relations. I told Mr Goodlad the nationality issue will not go away. Like a bad penny, it will keep turning up. The nationality question has generated intense hostility within Legco because members feel the number of people involved is so small and it is entirely within Britain's power to give and does not require negotiations with Beijing. Feelings are running so high that I am considering moving a motion of no confidence in the British Government on nationality issues in Legco. I have been assured that it will be enthusiastically supported and resoundingly carried. With less than four years to go before the handover, the FAC's visit should help to focus attention on Britain's special obligation to the territory, whose people, according to the FAC 1989 report, ''are not able to exercise the fundamental right of self-determination''. Besides the problems on the elections, there is also deep concern over the work of the Sino-British Joint Liaison Group. If no satisfactory progress is made, it may result in constitutional, legal and judicial chaos. Faced with all these difficulties, the FAC should see the territory is not equipped to exercise the ''high degree of autonomy'' promised in the 1984 Joint Declaration. Many Hong Kong people would like to know how the FAC can help the territory have a smooth transition and thus help Britain to withdraw with honour.