CONFIDENTIAL

Chinese nationals in Civil Service posts any difficulties? Morale?

No difficulties. Already provided for in Joint Declaration

that certain senior posts in the SAR Government have to be filled by

local officers. Localisation is established HKG policy and is now

bearing fruit. Planning well advanced for local officers to fill

the most senior posts before 1997.

Expatriate officers already accept that a small number of posts

in the highest level of government must be reserved for Chinese

nationals. This was made clear in the Joint Declaration.

CONFIDENTIAL

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