PAGE THREE XBGRØ318 CONFD
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5.ONE NEW AND INTERESTING WRINKLE ON 1997 ISSUE IS A PETITION BEING DRAWN UP BY HKONG POLICE INSPECTORS ASSOC. AS MENTIONED IN AN EARLIER REPORT, THERE IS NERVOUSNESS AMONG POLICE RE 1997 ISSUE AS THEY
BELIEVE THEY WOULD BE IRRESTIBLE TARGET AFTER CHINESE ASSUMPTION OF SOVEREIGNTY.AS A MINIMUM THEY BELIEVE THAT POLITICAL LOYALITIES WOULD PE FACTOR IN APPOINTMENTS TO SENIOR ECHELONS AND SOME FEAR A DELIBERATE PURGING CF POLICE TO ENSURE LOYALTY.AS A RESULT A PETITION IS NOW CIRCULATING WHICH WILL ASK BRITISH GOVT FOR RIGHT CF ABOVE FOR
POLICE OFFICERS.
6. IN SUMMARY, SITUATION ON SURFACE HERE IS RELATIVELY TRANQUIL WITH BCTH SIDES AND MEDIA BEING MORE PRUDENT IN THEIR STATEMENTS. HOWEVER, UNEASE CONTINUES EXACERBATED BY SLUMP IN PROPERTY MARKET AND
ATTENDANT DIFFICULTIES IN IMPORTANT CONSTRUCTION INDUSTRY.
CCC/160 130105Z XBGR0318
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