For charge-stabilized suspensions, we study the influence of hydrodyna
mic interactions (HI) and electrostatic interactions on the dynamic st
ructure factor S(q,t), and on the long-time self-diffusion coefficient
D-s(L). Both types of interactions give rise to memory effects, which
lead to a slower and non-exponential decay of S(q, t), and which caus
e D-s(L) to be smaller than the short-time self-diffusion coefficient
D-s(S). A global measure of the non-exponential decay of S(q, t) is th
e non-exponentiality factor Delta(q), which can be determined experime
ntally by dynamic light scattering. We derive microscopic expressions
for the one-particle irreducible memory functions associated with Delt
a(q) and D-s(L), based on the generalized Smoluchowski equation and on
a projection operator method developed recently by Kawasaki. HI are a
ccounted for by a far-field expansion of the two-body hydrodynamic mob
ility tensors, by including the leading terms. We calculate Delta(q) a
nd D-s(L) by constructing a novel mode-coupling approximation scheme w
hich accounts for HI, and we extend the theory to moderately polydispe
rse suspensions. Our results for the measurable non-exponentiality fac
tor compare well with available experimental data. The effect of HI in
charge-stabilized colloids is to reduce the non-exponentiality of S(q
, t), and to cause an unexpected enhancement of D-s(L). Our calculatio
ns clearly demonstrate the importance of HI at volume fractions even a
s low as 10(-3).