6. THESE DEVELOPMENTS HAVE COINCIDED WITH AN INCREASE IN THE NUMBER OF DELEGATIONS (URBAN COUNCILLORS AND OTHER GROUPS OF COMMUNITY LEADERS) VISITING PEKING SEEKING REASSURANCE, AND A CONSEQUENTIL INCREASE IN THE AMOUNT OF INFORMATION BEING LEAKED BY CHINESE SPOKESMEN TO THEM. SOME OF PEKING'S ATTEMPTS AT REASSURANCE, (E.G. THAT POLICE OFFICERS WILL NOT BE SUBJECT TO ''REVENGE'') HAVE HAD THE OPPOSITE EFFECT.

7. A NEW ANXIETY CONCERNS THE EXTENT TO WHICH THE HONG KONG GOVERNMENT WILL BE ABLE TO MAINTAIN ITS AUTHORITY DURING THE INTERIM PERIOD: THERE IS FEAR OF A ''LAME-DUCK'

GOVERNMENT AND OF AN INCREASING TENDENCY IN HONG KONG TO RE-INSURE

WITH PEKING.

8. AT THE SAME TIME THE SECRETARY OF STATE'S ANNOUNCEMENT HAS STIMULATED RENEWED INTEREST IN THE DEVELOPMENT OF MORE REPRESENTATIVE FORMS OF GOVERNMENT, ON THE GROUNDS THAT IF THE HONG KONG PEOPLE ARE TO BE LEFT TO FEND FOR THEMSELVES THEY HAD BETTER COME TO TERMS WITH THE NEW SITUATION. IT HAS LED ALSO TO A REASSESSEMT BY UNOFFICIAL MEMBERS OF THE EXECUTIVE AND LEGISLATIVE COUNCIL OF THEIR ROLE. THEY ARE LIKELY TO BECOME INCREASINGLY ARTICULATE IN VOICING PUBLICLY THE VIEWS AND ANXIETIES OF PEOPLE IN HONG KONG ON THE ARRANGEMENTS FOR THE FUTURE AND ON RELEATED ISSUES, SUCH AS THEIR RIGHTS AS BRITISH NATIONALS AND THEIR WISH TO HAVE RECOGNISED THEIR RIGHT TO SEEK SETTLEMENT ELSEWHERE. THE VISIT TO LONDON IN CONNEXION WITH THE PARLIAMENTARY DEBATE IS LIKELY TO BE ONLY THEIR FIRST MOVE IN THIS NEW ROLE.

9. FORTUNATELY THE ECONOMY IS STILL HEALTHY. EXPORTS ARE BOOMING: THERE IS LITTLE UNEMPLOYMENT AND THERE IS NO FEELING OF IMMINENT CHANGE. BUT SPIRITS OTHERWISE ARE DISTINCTLY LOW. ONLY TIME WILL SHOW WHETHER THE MOOD WILL IMPROVE AS THE POLULATION COME TO TERMS WITH FACT THAT CHANGE WAS INEVITABLE: HOWEVER ALTHOUGH THE PROSPECT IS MUCH AN UNWELCOME ONE THERE IS NO DOUBT THAT IT WAS RIGHT TO BEGIN THE PROCESS OF ACCUSTOMING HONG KONG TO IT.

YOUDE

- FUTURE OF HONG KONG

TAR.MMEND

ED/PLANNING STAFF

/PUSD

D/ED/PUSD

*PES.B. (MR WALKER)

LEGAL ADVISER (MR FREELAND)

PS

PS/LADY YOUNG

PS/KE LUCE

PS/PUS

SER J BULLARD

W HARDING WILSON

132 FRIGHT

COPIES TO:

BUCKINGHAM PALACE

PS/LORD PRESIDENT OF THE COUNCILL PS/HOME SECRETARY

PS/CHANCELLOR OF THE EXCHEQUER

PS/LORD PRIVY SEAL

PS/SECRETARY FOR TRADE & INDUSTRY

COPIES TO: (VIA ADR)

MR ROBERTS NEWS D

MR BURROWS

LEGAL ADVS

MR COLES NO 10 DOWNING ST

MR MARTIN ASSESSMENT STAFF CABINET OFFICE

MR GOODALL

CABINET OFFICE

MR BRENNAN CABINET OFFICE

PS/S OF S FOR DEFENCE D

PS/ATTORNEY GENERAL

STR. C TICKELL

SIR P CRADOCK EM K195

2.

SIR P CRADOCK NO 10 DOWNING STREET

Share This Page