CONFIDENTIAL AND STRICTLY PERSONAL

is resented. There is merit in building up the positions of key officials such as the Chief Secretary and Financial

Secretary as part of ensuring that there is a strong and effective administration in place which can continue after

1997.

10.

In negotiating the Joint Declaration with the Chinese one of our principal aims was that post-1997 Hong Kong should enjoy the same autonomy and lifestyle as it has now. While there is room for argument as to how far the Peking regime will respect that autonomy after 1997, there is little doubt that a reversal of policy now, involving the imposition of tight control from London, would give the Chinese a pretext for imposing tighter control from Peking

after 1997.

11.

There is also the point that by ensuring a tighter grip on the policies of the Hong Kong Administration HMG would be taking on a greater direct responsibility for Hong Kong affairs. If there were to be an economic/financial crisis, HMG could then be sucked in with political and, in the worst case, financial consequences for HMG.

HONG KONG ATTITUDES

12.

Hong Kong opinion traditionally expects the Governor

to represent and work for the interests of Hong Kong. Each new Governor has initially faced suspicions that he has arrived to do London's bidding and that when Hong Kong and

/British

MARACE/4

CONFIDENTIAL AND STRICTLY PERSONAL

Share This Page