CONFIDENTIAL

04774

MDHIAN 07

THE MASS TRANSIT RAILWAY CORPORATION WOULD CHARGE HIGHER FARES

DURING PEAK HOURS IS A TYPICAL EXAMPLE. BREAD-AND-BUTTER ISSUES OF THIS TYPE ARE QUICKLY TAKEN UP BY THE PRESSURE GROUPS AND OFTEN ALSO

BY DISTRICT BOARDS. BUT IT WOULD BE WRONG TO THINK THAT THESE ISSUES

REALLY CAUSE MORE CONCERN THAN THE APPROACH OF 1997. IT IS SIMPLY

THAT MOST PEOPLE KNOW THAT THEY HAVE LITTLE PROSPECT OF EMIGRATING

AND ARE CULTURALLY CONDITIONED TO TRYING TO MAKE THE BST OF A HARSH

WORLD.

12. EMIGRATION IS CERTAINLY THE MOST VISIBLE MANIFESTATION OF CONCERN OVER THE FUTURE. THE MAJOR RECIPIENT COUNTRIES HAVE

INCREASED THEIR OFF-TAKE FROM HONG KONG. IN 1987 SOME 39,000 PEOPLE

WERE GRANTED EMIGRANT VISAS A 79 PERCENT INCREASE OVER 1986. WE

EXPECT A FURTHER, BUT PROBABLY SMALLER, INCREASE IN 1988. DEPARTURES CAN THEMSELVES BE UNSETTLING AND TEND TO CREATE A SNOWBALL EFFECT. IN ADDITION, THE BUSINESS SECTOR IS NOW BEING AFFECTED BY THE LOSS OF EXPERIENCED MAGAGERIAL AND PROFESSIONAL STAFF, PARTICULARLY IN FINANCE AND COMPUTING. THIS PROBLEM HAS BEEN ACCENTUATED BY THE BUOYANCY OF THE ECONOMY AND THE OUTFLOW OF MANAGERIAL AND TECHICAL TALENT TO HONG KONG ENTERPRISES IN CHINA.

13.

EMIGRATION IS CERTAINLY MORE THAN A MEDIA MIRAGE: BUT IT IS NOT YET A CRISIS. THE GOVERNMENT IS EXAMING WHAT CAN BE DONE TO IDENTIFY MORE PRECISELY THE SECTORS MOST AFFECTED AND TO INCREASE THE POOL OF

TRAINED MANPOWER AVAILABLE FOR THESE. IT IS ALSO LOOKING CAREFULLY

AT WAYS OF ATTRACTING BACK TO HONG KONG THOSE WHO HAVE LEFT AND

ACQUIRED THEIR INSURANCE FOR THE FUTURE. BUT IT WILL TAKE SOME TIME

BEFORE THESE MEASURES CAN HAVE ANY REAL EFFECT. IN THE MEANTIME, MAIN PROBLEM POSED BY EMIGRATION WILL BE A PSYCHOLOGICAL ONE. NERVOUSNESS CAN ONLY TOO EASILY FEED ON ITSELF. IT NEEDS CONSTANTLY TO BE COMBATTED BY THE ACTIONS AND WORDS OF BOTH THE BRITISH AND CHINESE GOVERNMENTS, AS WELL AS THE HONG KONG GOVERNMENT, IF IT IS TO BE KEPT IN CHECK.

WILSON

THE

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