4.

Meanwhile, the Chinese have kept up a steady stream of hostile propaganda. They are short on specific arguments, and concentrate on the potentially damaging effects on Hong Kong of a row with China (chaos; no smooth transition in 1997) and personal attacks on the Governor (a foreigner; a dictator; only concerned with his own image; gambling with the future of Hong Kong). Their purpose is clearly to chip away at the remarkably high approval rating in Hong Kong, both for the Governor and for his LegCo speech. In spite of various Chinese threats, support for the Governor and his proposals has held up remarkably well. There are signs of nervousness in the business community and the Hang Seng Index has become more volatile. However, economic fundamentals in Hong Kong remain extremely sound.

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