:
CONFIDENTIAL
5. MOST CIVIL SERVANTS HAVE REACTED FAVOURABLY, AND CONSIDER THAT THE AGREEMENT COVERS THE AREAS OF MAJOR CONCERN TO THEM. SOME EXPATR- IATE OFFICERS ARE HOWEVER UNHAPPY ABOUT THEIR REDUCED CAREER PROSPECTS, AND HAVE ASKED FOR DETAILS OF COMPENSATION ARRANGEMENTS. CONCERN STILL LINGERS ABOUT SECURITY OF PENSIONS, AND IN PARTICULAR ABOUT PENSION ARRANGEMENTS FOR OFFICERS UNWILLING TO CONTINUE SERVING AFTER 1997. INTEREST HAS BEEN CAUSED BY A REPORT IN THE SOUTH CHINA MORNING POST THAT WHITEHALL IS CONSIDERING HOW MANY
HONG KONG CIVIL SERVANTS SHOULD BE ALLOWED TO SETTLE IN THE UK ON
ACCOUNT OF THE SENSITIVITY OF THEIR JOBS.
ECONOMIC INDICATORS
6. WHILE THE HONG KONG DOLLAR HAS FIRMED SLIGHTLY DURING THE PAST FORTNIGHT, THERE ARE NO SIGNS OF ANY SUBSTANTIAL DEMAND FOR IT. THE HANG SENG INDEX ALSO INITIALLY FIRMED SLIGHTLY, BUT HAS SINCE FALLEN, MAINLY BECAUSE OF DISAPPOINTING RESULTS FROM JARDINES: THE COMMISSIONER FOR SECURITIES CONSIDERS THAT ITS PERFORMANCE HAS BEEN BASICALLY HEALTHY AND INDICATES AN UNDERLYING CONFIDENCE. THERE ARE ALSO GROWING INDICATIONS OF INCREASING DEMAND FOR RESIDENTIAL PROPERTY, ESPECIALLY AT THE LOWER END OF THE MARKET.
CHINESE NATIONAL DAY
7. CELEBRATIONS HAVE BEEN PROMINETLY REPORTED IN THE LOCAL PRESS. THE OFFICIAL HONG KONG DELEGATION TO PEKING, LED BY THE CHIEF SECRETARY, WERE WELL RECEIVED AND ADDRESSED BY THE CHINESE PRIME MINISTER, WHO REITERATED CHINA'S FIRM INTENTION TO IMPLEMENT THE SINO-BRITISH AGREEMENT. DENG XIAOPING DID NOT MEET THE OFFICIAL DELEGATION, BUT HE SPOKE TO 230 HONG KONG RESIDENTS DRAWN FROM
VARIOUS CIRCLES OF LOCAL LIFE TO WHOM THE CHINESE HAD GIVEN INDIVI-
DUAL INVITATIONS. FOR THE MOST PART THESE PEOPLE ARE NON-COMMUNIST, AND IN MANY CASES ANTI-COMMUNIST, AND IT IS NOTEWORTHY THAT THEY
SHOULD HAVE NONETHELESS DECIDED TO ACCEPT THE CHINESE INVITATION.
YOUDE
FUTURE OF HONG KONG
LIMITED
HD/HKD
HD/FED
HD/PLANNING STAFF
HD/PUSD
DEP HD/PUSD
RESEARCH D (MR WALKER)
PS
PS/LADY YOUNG PS/MR LUCE PS/PUS
MR DEREK THOMAS
SIR W HARDING MR GOODALL
MR WILSON
SIR J FREELAND
THIS TELEGRAM
WAS NOT
ADVANCED
COPIES TO:-
BUCKINGHAM PALACE
PS/LORD PRESIDENT OF THE COUNCIL PS/HOME SECRETARY
PS/CHANCELLOR OF TH EXCHEQUER
PS/LORD PRIVY SEAL
PS/SECRETARY FOR TRADE & INDUSTRY
COPIES TO:- (VIA ADR)
MR ROBERTS NEWS D
MR FIFOOT LEGAL ADVISERS
MR BURROWS LEGAL ADVISERS
MR POWELL NO 10 DOWNING ST.
MR INGHAM NO 10 DOWNING ST.
MR MARTIN ASST STAFF CABINET OFFICE MR CARTLEDGE CABINET OFFICE
MR COLVIN CABINET OFFICE PS/S OF S FOR DEFENCE
PS/ATTORNEY GENERAL
SIR P CRADOCK ROOM K195
SIR P CRADOCK NO 10 DOWNING ST. MR KELLY TREASURY
CONFIDENTIAL