GRS 1400
CONFIDENTIAL
FM HONG KONG
CONFIDENTIAL
HKK 02615
RECEIVED WHEGSTRY
15 SEP 1986
TO DESKBY 020001Z PEKING
TELNO 212
OF 01094OZ SEPTEMBER 86
PLEASE PASS TO SIR E. YOUDE DESKBY 020001Z
DESK
.:GISTFY
INDEX
PA.
in Taken
AJBIJA
DRAFT SPEAKING NOTE FOR SENIOR UNOFFICIAL MEMBER OF EXECUTIVE
COUNCIL TO USE IN LONDON HEREWITH.
SITUATION AND MOOD IN HONG KONG
1. DAYA BAY THE MAIN PREOCCUPATION OF THE MEDIA. THE PROCEEDINGS
IN BLDC AND BLCC MEETINGS DRAW FULL MEDIA COVERAGE, BUT GENERAL PUBLIC APPEARS LESS INTERESTED IN THE DISCUSSIONS. THE ECONOMY
HAS PICKED UP IN 1986, WITH DOMESTIC EXPORTS PARTICULARLY STRONGLY RECOVERING. STOCK MARKET STRONG. RATE OF INFLATION LOW. UNEM-
PLOYMENT STABLE AT 3 PERCENT. GDP NOW FORECAST TO GROW BY 5
6 PERCENT IN REAL TERMS THIS YEAR.
2.
THE IMPORTANCE OF A
THE PEOPLE OF HONG KONG.
STRONG ECONOMY IS WELL APPRECIATED BY
THE DAY BAY MATTER IS CAUSING CONSIDERABLE PUBLIC CONCERN AMONG THE EDUCATED CLASSES AND BUSINESS PEOPLE, NOT ONLY BECAUSE OF THE NUCLEAR ASPECT, BUT BECAUSE CHINA'S ATTITUDE TO THE ANTI-NUCLEAR MOVEMENT IS SEEN AS A KEY TO THE EXTENT TO
WHICH CHINA MAY LISTEN TO HONG KONG OPINION POST-1997. THE ACTIVITY OF COUNCILLOR MARTIN LEE, IN PARTICULAR TRYING TO GET A SPECIAL MEETING OF LEGCO TO DISCUSS DAYA BAY, AND HIS VIEW THAT THE GOVERNOR NS MN A CONFLICT OF INTEREST AS HEAD OF EXECUTIVE COUNCIL AND PRESIDENT OF LEGISLATIVE COUNCIL, IS CAUSING SOME PUBLIC CONCERN.
CONSTITUTIONAL GOVERNMENT AND THE BASIC LAW
3. CONSIDERABLE MEDIA INTEREST IN THE GOVERNOR'S VISPT TO PEKING AND THE EXCO VISIT TO LONDON, WITH SPECULATION THAT MAJOR DECISIONS REGARDING THE 1987 REVIEW ARE UPCOMING. MEDHA VIEW THAT **CONVERGENCE' MEANS THE BRITISH AND HONG KONG GOVERNMENTS MOVING TOWARDS THE CHINESE GOVERNMENT RATHER THAN THE CHINESE AND THE BRITISH GOVERNMENTS MOVING TOGETHER. THE CONSULTATIVE DOCUMENT ON REDRESS OF GRIEVANCES (OMBUDSMAN) IS INTERPRETED AS AN EXAMPLE OF HMG/HKG BACK-TRACK-ING.
4. GENERAL UNDERSTANDING THAT THE 1987 REVIEW CANNOT GO FURTHER IN CHANGING THE STRUCTURE THAN THE BASIC LAW IS LIKELY TO GO. *IMPORTANCE OF CONVERGENCE WELL UNDERSTOOD, BUT CHINESE MUST UNDERSTAND THAT THEY SHOULD TAKE INTO ACCOUNT HONG KONG OPHION.
CONFIDENTIAL
INCREASING
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