CONFIDENTIAL
044564
MDHIAN468
OPERATE A ''ONE COUNTRY TWO SYSTEMS'' POLICY AFTER 1997. IN THE SAME SURVEY, 59 PER CENT SAID THAT THEY EXPECTED THE PEOPLE OF HONG KONG TO EXPERIENCE AN EROSION OF THEIR FREEDOMS AFTER 1997.
LAW AND ORDER
4. IN AN OPINION POLL CONDUCTED IN MID AUGUST, RESPONDENTS RATED LAW AND ORDER AS THE MOST IMPORTANT ISSUE OF PUBLIC CONCERN. THIS
RESPONSE REFLECTS ANXIETY OVER AN INCREASE IN THE NUMBER OF ARMED
ROBBERIES THIS YEAR. THESE ROBBERIES ARE OFTEN CARRIED OUT BY
CRIMINALS FROM THE CHINESE MAINLAND WHO SMUGGLE ARMS IN TO HONG
KONG AND WHO WORK IN CONJUNCTION WITH LOCAL GANGS.
5. THE COMMUNITY IS ACCUSTOMED TO HIGH STANDARDS OF PUBLIC ORDER
AND REACTS QUICKLY TO ANYTHING WHICH SUGGESTS A DETERIORATION. THE REALITY IS THAT STANDARDS ARE NOT SLIPPING AND CONFIDENCE IN THE POLICE FORCE REMAINS HIGH. OUR EFFORTS TO IMPROVE CO-
OPERATION WITH THE PRC AUTHORITIES HAS GONE SOME WAY TO ALLAY PUBLIC ANXIETY, AND OUR PLANS TO TRANSFER SEVERAL HUNDRED POLICE OFFICERS FROM MANAGING VIETNAMESE MIGRANT CAMPS TO NORMAL POLICE
DUTIES WILL ALSO HELP.
PUBLIC SERVICES
6. THIS ISSUE HAS EMERGED IN VARIOUS GUISES THIS YEAR, AND IN THE MID-AUGUST OPINION POLL RESPONDENTS RATED IT AS THE SECOND MOST IMPORTANT ISSUE FOR VOTERS CONTEMPLATING THE LEGCO ELECTIONS. INDUSTRIAL RELATIONS DISPUTES IN THE CIVIL SERVICE EARLIER IN THE YEAR CAUSED PUBLIC ANXIETY ABOUT MAINTAINING THE QUALITY OF PUBLIC SERVICES. IN RECENT MONTHS, HOWEVER, CONCERN HAS SHIFTED TO A MORE GENERALISED WORRY ABOUT WHETHER EXPENDITURE ON THE NEW AIRPORT WILL RESULT IN CUT-BACKS IN PUBLIC SERVICES. THE AIRPORT WILL NOT BE FUNDED AT THE EXPENSE OF PUBLIC SERVICES, AND WE ARE MAKING A DETERMINED EFFORT TO GET THIS MESSAGE ACROSS IN OUR PR.
THE ECONOMY
7. THE ECONOMIC OUTLOOK HAS IMPROVED SINCE THE SPRING. THE SPEEDY AND SUCCESSFUL OUTCOME OF THE GULF WAR, THE AGREEMENT WITH CHINA OVER THE NEW AIRPORT AND THE COLLAPSE OF THE COUP IN THE SOVIET UNION HAVE ALL HELPED TO ENHANCE BUSINESS PROSPECTS. EXPORTS ARE MOVING AHEAD QUICKLY, AND WE HAVE REVISED OUR GROWTH ESTIMATE FOR THE YEAR FROM 3.5 TO 4 PER CENT. WE EXPECT TO ACHIEVE EVEN BETTER GROWTH IN 1992.
8. THE ECONOMIC BLACKSPOT IS INFLATION. THE ANNUAL RATE REACHED 13.9 PER CENT IN APRIL BUT HAS SINCE FALLEN BACK. THE RATE FOR
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