CURRENT MCOD IN HK
GRS 800
SECRET
FM HONG KONG 01115OZ MAY 84
TO IMMEDIATE FCO
SECRET
TELEGRAM NUMBER 1178 OF 1 MAY
3.
INFO IMMEDIATE PEKING
MY TELS NO 1102 AND 814 FROM PEKING:
FUTURE OF HONG KONG: THE MOOD
FOLLOWING THE SECRETARY OF STATE'S PRESS CONFERENCE
1. DURING THE LAST WEEK THE REACTION TO THE SCENARIO FOR THE FUTURE OF HONG KONG OUTLINED BY THE SECRETARY OF STATE AT HIS PRESS CONFERENCE ON GOOD FRIDAY HAS BECOME STEADILY MORE CRITICAL. THERE ARE SOME REFERENCES IN THE PRESS TO BRITAIN HAVING SOLD CUT" BY CONCEDING BOTH SOVEREIGNTY AND ADMINISTRATION: AND A GENERALLY PESSIMISTIC EVALUATION OF THE LIKELIHOOD OF THE ARRANGE- MENTS HE OUTLINED MAINTAINING CONFIDENCE IN HONG KONG OR GIVING ANY REAL ASSURANCE FOR ITS FUTURE.
2. THE STOCK MARKET HAS DRIFTED DOWNWARDS DURING THE WEEK IN EXTREMELY THIN TRADING. IT STOOD AT 1034 TODAY (BUT THIS IS WHERE IT STOOD AT THE BEGINNING OF APRIL AND IT IS STILL SUBSTANTIALLY ABOVE LAST SEPTEMBER'S LOW OF 758). IT IS TOO EARLY TO ASSESS THE IMPACT ON OTHER MAJOR ECONOMIC INDICATORS.
3.
ALTHOUGH
PRIVATELY THE REACTION AMONG THE MIDDLE AND RICHER CLASSES HAS RANGED FROM RESIGNATION AND DEPRESSION TO INDIGNATION. THE CONTINUATION OF BRITISH ADMINISTRATION AFTER 1997 WAS RECOGNISED AS UNLIKELY, IT IS APPARENT THAT MANY STILL HOPED, HOWEVER ILLOGICALLY, FOR THE RETENTION OF SOME RESIDUAL FORM OF BRITISH ADMINISTRATION OR INVOLVEMENT. THE DASHING OF THAT HOPE HAS GIVEN RISE TO A DEGREE OF ANTI-BRITISH FEELING. MANY HAVE EXPRESSED AN INTENTION TO LEAVE AND EMIGRATION ENQUIRIES AT MAJOR CONSULATES HAVE INCREASED. OTHERS SUCH AS MANUFACTURERS AND PROFESSIONALS ARE CONSIDERING HOW BEST TO MAKE USE OF BUSINESS OPPORTUNITIES TO MAKE ENOUGH MONEY IN THE NEXT 13 YEARS OF BRITISH RULE IN ORDER TO SET THEMSELVES UP ABROAD IN DUE COURSE.
4. THE ADMINISTRATIVE GRADE OF THE CIVIL SERVICE HAS TAKEN THE ANNOUNCEMENT PARTICULARLY HARD AND THE SAME REACTION IS LIKELY FROM MIDDLE LEVEL LOCAL POLICE OFFICERS. A NUMBER ARE RE-ASSESSING THEIR PROSPECTS IN THE SERVICE AND DECLARING AN INTENTION TO LEAVE OR SEEKING ASSURANCES ABOUT THEIR FUTURE.
5. AMONG THE GENERAL POPULATION AND THE LOWER RANKS OF THE CIVIL SERVICE THERE IS SOME INDIFFERENCE ON GROUNDS THAT THEY WILL HAVE -TO STAY ANYWAY AND SOME RESIGNATION: BUT ALSO CONCERN FOR THEIR LIVELIHOOD IF THERE IS AN ECONOMIC DOWNTURN FOLLOWING A LOSS OF CONFIDENCE AS 1997 APPROACHES.
SEORET
16.