TNAG-1310-FCO40-1667-Future-of-Hong-Kong-1984 — Page 151

GRS 800

SECRET

SECRET

MKKO 40/1

RECEIVED IN

S

誓

- 3 MAY 1984

Oi be 日

JY

B25

TO IMMEDIATE FCO

FM HONG KONG 01115OZ MAY_84

DEMA GAT!:

TELEGRAM NUMBER 1178 OF 1 MAY

INDEX

INFO IMMEDIATE PEKING

MY TELS NO 1102 AND 814 FROM PEKING:

¡Y

ken

W

8B 415.

FUTURE OF HONG KONG: THE MOOD

FOLLOWING THE SECRETARY OF STATE'S PRESS CONFERENCE

1. DURING THE LAST WEEK THE REACTION TO THE SCENARIO FOR THE

FUTURE OF HONG KONG OUTLINED BY THE SECRETARY OF STATE AT HIS

PRESS CONFERENCE ON GOOD FRIDAY HAS BECOME STEADILY MORE CRITICAL.

THERE ARE SOME REFERENCES IN THE PRESS TO BRITAIN HAVING ''SOLD

OUT'' BY CONCEDING BOTH SOVEREIGNTY AND ADMINISTRATION: AND A

GENERALLY PESSIMISTIC EVALUATION OF THE LIKELIHOOD OF THE ARRANGE-

MENTS HE OUTLINED MAINTAINING CONFIDENCE IN HONG KONG OR GIVING ANY

REAL ASSURANCE FOR ITS FUTURE.

2. THE STOCK MARKET HAS DRIFTED DOWNWARDS DURING THE WEEK IN

EXTREMELY THIN TRADING. IT STOOD AT 1034 TODAY (BUT THIS IS WHERE

IT STOOD AT THE BEGINNING OF APRIL AND IT IS STILL SUBSTANTIALLY

ABOVE LAST SEPTEMBER'S LOW OF 758). IT IS TOO EARLY TO ASSESS THE

IMPACT ON OTHER MAJOR ECONOMIC INDICATORS.

3. PRIVATELY THE REACTION AMONG THE MIDDLE AND RICHER CLASSES

HAS RANGED FROM RESIGNATION AND DEPRESSION TO INDIGNATION. ALTHOUGH

THE CONTINUATION OF BRITISH ADMINISTRATION AFTER 1997 WAS

RECOGNISED AS UNLIKELY, IT IS APPARENT THAT MANY STILL HOPED, HOWEVER ILLOGICALLY, FOR THE RETENTION OF SOME RESIDUAL FORM OF BRITISH

ADMINISTRATION OR INVOLVEMENT. THE DASHING OF THAT HOPE HAS GIVEN

RISE TO A DEGREE OF ANTI-BRITISH FEELING. MANY HAVE EXPRESSED

AN INTENTION TO LEAVE AND EMIGRATION ENQUIRIES AT MAJOR

CONSULATES HAVE INCREASED. OTHERS SUCH AS MANUFACTURERS AND

PROFESSIONALS ARE CONSIDERING HOW BEST TO MAKE USE OF BUSINESS

OPPORTUNITIES TO MAKE ENOUGH MONEY IN THE NEXT 13 YEARS OF BRITISH

RULE IN ORDER TO SET THEMSELVES UP ABROAD IN DUE COURSE.

4. THE ADMINISTRATIVE GRADE OF THE CIVIL SERVICE HAS TAKEN THE

ANNOUNCEMENT PARTICULARLY HARD AND THE SAME REACTION IS LIKELY FROM MIDDLE LEVEL LOCAL POLICE OFFICERS. A NUMBER ARE RE-ASSESSING

THEIR PROSPECTS IN THE SERVICE AND DECLARING AN INTENTION TO

LEAVE OR SEEKING ASSURANCES ABOUT THEIR FUTURE.

5. AMONG THE GENERAL POPULATION AND THE LOWER RANKS OF THE CIVIL

SERVICE THERE IS SOME INDIFFERENCE ON GROUNDS THAT THEY WILL HAVE

TO STAY ANYWAY AND SOME RESIGNATION: BUT ALSO CONCERN FOR THEIR

LIVELIHOOD IF THERE IS AN ECONOMIC DOWNTURN FOLLOWING A LOSS OF

CONFIDENCE AS 1997 APPROACHES.

SEORET

16.