L
KK04025
CONFIDENT
RE
· AUG 1984
Pa
ясник
ん
FROM: A C GALSWORTHY,
DATE: 16 August 1984
cc: Sir P Cradock
HKD
17/8/1
45
Mr
Gyalım
HK
Thank you
PS/Mr Luce
Jurity
Sir W Harding
Mr Orr, FED
FUTURE OF HONG KONG: STATE OF PUBLIC OPINION
1. We have commissioned a regular series of reports from Hong Kong
on the debate in the territory about the future, so that Ministers
can keep in touch with developments.
A 2. I submit the latest in this series of reports. It says that
Hong Kong opinion is very volatile. Before the Secretary of State's
press conference on 1 August the atmosphere had become increasingly
depressed and nervous. However there was also an increasing sense
of realism as people adjusted to the idea of living under Chinese
sovereignty. After the Secretary of State's statement there was a
sense of relief and a feeling that events were moving fast and in a
generally satisfactory direction. This relief was reflected in a 67
point rise by the Hang Seng Index on 2 August.
3. The export sector continues to grow. The number of foreign
business establishments registered in Hong Kong increased by 11%
during the first half of 1984. On a more negative note, the
exchange rate remains under some
pressure.
4. The concerns and anxieties of the Public Service continue; there
has been a slight increase in the number of resignations. However
morale still holds up. Four members of the politically non-aligned
Chinese Civil Servants Association visited Peking and had
discussions with Ji Pengfei who made some reassuring remarks.
5.
assessment
An increasing number of people are saying that the
set up to test the acceptability of an agreement, will be a
stamp. However most people now accept that a referendum
office
rubber
CONFIDENTIAL
14.