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5.

Secondly,

Mr.

Raymond

Pang said that the

deteriorating law and order situation in Hong Kong had

remained a matter of grave public concern. In particular, the

supply of firearms to local criminals from China and the high

rate of car theft (and the consequent car smuggling into

China) were matters of concern.

He urged the Hong Kong

government to seek Chinese cooperation in dealing with these

problems.

6.

Thirdly, the high rate of inflation and the rising

property prices remained a matter of grave concern to the

public.

He said the sandwich class were feeling extremely

frustrated as the continuing escalation of property prices had

thwarted their aspirations to own home. This problem could

adversely affect social cohesion. It was widely believed that

the US/HK Dollar link had contributed to the serious inflation

problem faced by Hong Kong.

therefore be reviewed.

The US/HK Dollar link should

Fourthly, the need for good relationship between UK

7.

and

PRC

and

proclaimed

of

between

intention

Hong Kong and PRC. The new Governor's *

to

maintain a cordial working

relationship between Hong Kong and China had the full support

DB chairmen. However there is general public concern about.

the current impasse over the airport financial arrangements.

He

urged that the

problems should be resolved as early as

possible.

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