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 THE IR 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
IL-ATTEND
/PLANNING STAFF
ED/PUSD
D/ED/PUSD
PES B. (R WALKER)
LEGAL ADVISER (MR FREELAND). PS
PS/LADY YOUNG
PS/KE LUCE
PS/FUS
SER J BULLARD
SIR W HARDING
R WILSON
KR WRIGHT
SER C TICKRELL
Co
COPIES TO;
BUCKINGHAM PALACE
PS/LORD PRESIDENT OF THE COUNCIL PS/HOME SECRETARY
PS/CHANCELLOR OF THE EXOSEQUER
PS/LORD PRIVY SEAL
PS/SECRETARY FOR TRADE & INDUSTRY
COPIES TO: (VIA ADE)
MR. ROBERTS IERS D
MR BURROWS
HR COLES NO
LEGAL ADVS
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
SIR ? CRADOCK EM KIS
STR P CRADOCK NO 10 DOWNING STREET
Camp Sjuk a $2200. FAZAT KENGAY