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Be prepared to take unilateral action where this
is essential to maintain Hong Kong's
stability/prosperity.
If China seeks to delay
economic development by holding up land-grants, contracts etc, HKG will need to weigh up in each case whether it has the option of unilateral action (eg by paying for infrastructure development out of its reserves, rather than seeking financing which will inevitably entail post-1997 obligations). There may be some things which we and HKG cannot do. A good deal will depend on the attitude of LegCo's Finance Committee to voting money for projects opposed by
China, which will in turn reflect the level of support in the community for proceeding with a project in the face of Chinese intransigence.
Develop contingency plans for dealing with active
Chinese harassment. In many cases, HKG can do little to prevent Chinese measures, but will need to be prepared to cope with the consequences (eg using emptying Vietnamese Migrant camps to house illegal immigrants, stepping up police and RN patrols against smuggling). Decisions on the rate of reduction of the garrison will need to take account of the possibility of civil unrest, eg in the run-up to the 1995 elections. We and HKG will need to do what we can to sustain morale
in the Civil Service (eg adequate pension
safeguard arrangements).
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HongKongissuesahead/BRIEFS/NJH