CONFIDENTIAL

8. I came across a certain amount of criticism of the régime and of President Chun personally, mainly from journalists and businessmen. It was felt that the repressive policies being followed were not the right way to meet the threat from North Korea. The journalists admitted, however, that they were constrained to trim their sails

to the Government's wind. One businessman said that people put up with President Chun for stability's sake, as had been the case with President Park, whom history would say had been a good leader for

South Korea.

Hong Kong

9.

After sixteen years, the city was scarcely recognisable, so great

has been the tempo of new construction. There is much to be said for the tall towers, all set at different levels, on the Victoria

side;

less for the square, squat lumps of Kowloon. Perhaps when Kaitak ceases to operate, in favour of the large new airport on Lantau Island, the skyline will be allowed to rise dramatically there

too.

10. As yet nobody seems particularly worried by what might happen in 1997 and land values are apparently still soaring. New hotels, shopping centres, supermarkets, banks and insurance buildings are all either under construction or projected and I was told that at least one bank was granting mortgages going beyond the year 2000.

In one respect only must some reservation be made in this success story Hong Kong no longer appears to be the undisputed bargain basement of Asia it was in the 1960s, although in certain fields (eg audio and electrical equipment) prices are still very competitive.

11. According to my relatives, people in Hong Kong cared little about the British Nationality Law since "nobody wants to emigrate to the UK anyway". There had been some bitterness over the increase in university fees for overseas students but most people were now sending their children to Australia and New Zealand, or the USA, to study. Asked about police affairs (the Godber and Maclennan cases), my relative said that a good deal of public scepticism remained; felt that there had been a cover-up of some sort on both issues.

/Brunei

Brands Veng kasamangat i disgrande

it was

CONFIDENTIAL

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