1
3.
4.
Law and Order
a.
Police
We have asked the Overseas Police Adviser, who reported
earlier on the low morale of the force, to advise on
methods of strengthening and improving the force
e.g. by bringing in Colonial policemen made redundant
elsewhere.
Corruption
The image of Hong Kong has suffered a serious blow as a result of recent developments. It will be necessary
to back ICAC to the full while ensuring that review and appeals procedures ensure that justice is seen to
be done to individuals.
c. Drugs and gangs
Recent publicity about drug pushing through Hong Kong and the activities of the Triad gangs have also harmed Hong Kong's image. The Governor's efforts to deal with these problems will need to be supported.
Economy and Trade.
a. Textiles Negotiations
The controversy over the Multifibre Agreement and the bilateral with the EEC has also harmed Hong Kong's image
here but we must also be concerned about the British
and EEC image in Hong Kong. Mr Tran van Tinh's behaviour
has seemed paranoic in Hong Kong and there is strong resentment there that Hong Kong's traditional exports are being hit not to protect workers in Europe (which Hong Kong would probably accept) but to provide outlets for new Third World suppliers.
b. Economic implications for Hong Kong
As soon as final figures under a. are known we shall need
to make a quick but accurate assessment of the effect on
/Hong Kong's
CONFIDENTIAL
Page 60Page 61