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14.
Sir G Yeend suggested that the situation in Hong Kong
say six months after the announcement in September would be reasonably stable. The Governor replied that most of the population would have no option but to accept and live with. the terms of any agreement. But it was important that groups such as the Civil Service, the Police and the professional and middle classes were satisfied with the integrity of any agreement if they were to remain.
15. The Chief Secretary said that the difficulty of recovering the situation if there was even a short term outflow of people and money should not be underestimated. The fear among the mobile group (which was large and was the backbone of Hong Kong) was not just their concern over events in China during the last 30 years, but also over what insulator could be provided to ensure that the two life styles could co-exist. The Governor added that it was not just a question of the economy and money the community was now mature and was looking for a continuity of life
style.
16. Mr Hawke said that the changes which had taken place in China had been fundamental and were irreversible. The Governor
It was said it was a question of building up a track record. still only 5 years since the end of the Cultural Revolution and many in Hong Kong had a direct knowledge of what life had been
like in China.
17. Mr Hawke asked the Governor for his judgement on the outcome of the talks. The Governor said he believed that it was possible to get a reasonable agreement but it was crucial that people in Hong Kong should be convinced that any agreement would work. Mr Hawke said his judgement was that the outcome of the talks would be an agreement which would allow Hong Kong to continue on broadly the present lines. This would be consonant with the way China was developing, and in particular the rising standards of living there.
/He
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