CONFIDENTIAL

CONFIDENTIAL

FM HONG KONG

TO DESK BY 24090OZ PEKING

нив

02711

TELNO 91

OF 240645Z JUNE 88

INFO PRIORITY FCO

149

170732

MDLIAN 7762

TOP COPY

FOR PS/LORD GLENARTHUR

LORD GLENARTHUR'S VISIT: CURRENT MOOD

(170)

1.MY TELNO 2003 TO FCO OF 25 MAY PRIOR TO THE SECRETARY OF STATE'S VISIT REMAINS LARGELY VALID. THE FOLLOWING IS AN UPDATED VERSION.

SUMMARY

2. IN GENERAL HONG KONG PROSPEROUS BUT NERVY. ECONOMY DOING WELL ALTHOUGH A PROBLEM WITH EMIGRATION A CONTRIBUTING FACTOR FOR SOME MIDDLE MANAGEMENT POSTS. BASIC LAW CURRENTLY TOP OF THE FUTURE- RELATED ISSUES: COMMENT FROM THE POLITICALLY AWARE BECOMING MORE FOCUSSED. MOST PEOPLE HAVE NOT READ THE DRAFT: NEVERTHELESS, CONCERN ABOUT WHAT IT IMPLIES FOR FUTURE CHINESE INTENTIONS AND BEHAVIOUR. GENERAL SUPPORT FOR THE NEW POLICY OF SCREENING VIETNAMESE BOAT PEOPLE. ANY ISSUE INVOLVING UK (VIETNAMESE REFUGEES, BN(O) PASSPORTS) LOOKED AT WITH SCEPTICAL INTENSITY TO JUDGE DEGREE OF HMG'S COMMITMENT TO HONG KONG. CONTINUING NERVOUSNESS ABOUT THE TRANSITION TO 1997.

GENERAL

3. THE GOVERNMENT CONDUCTS REGULAR PUBLIC OPINION POLLS TO GUAGE POPULAR OPINION ON CURRENT ISSUES AND ON THE GOVERNMENT'S PERFORMANCE. THE LATEST SUCH POLL WAS CONDUCTED IN DECEMBER, 80 PER CENT OF THOSE POLLED SAID THEY WERE (QUOTE) HIGHLY SATISFIED (UNQUOTE) OR (QUOTE) SATISFIED (UNQUOTE) WITH THE GOVERNMENT'S OVERALL PERFORMANCE THE GOVERNMENT SCORES HIGH MARKS FOR ITS HANDLING OF DOMESTIC ISSUES. THE FUTURE OF HONG KONG RANKS THIRD AS A PERCEIVED PROBLEM BEHIND TRANSPORT AND HOUSING.

THE ECONOMY

·

4. THE BUOYANT STATE OF THE ECONOMY IS A MAJOR CONTRIBUTING FACTOR TO THIS COMPARATIVELY ROSY VIEW OF LIFE IN THE PRESENT AND THE IMMEDIATE FUTURE. UNEMPLOYMENT HAS REMAINED VERY LOW AT

1.7 PER CENT FOR THE TREE MONTH PERIOD UP TO APRIL. INCREASES IN WAGE RATES, PARTICULARLY IN THE BUILDING AND CONSTRUCTION SECTOR,

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CONFIDENTIAL

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