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14.
Sir G Yeend suggested that the situation in Hong Kong
say six months after the announcement in September would be reasonably stable. The Governor replied that most of the population would have no option but to accept and live with
the terms of any agreement. But it was important that key groups such as the Civil Service, the Police and the professional and
middle classes should be satisfied with the integrity of any agreement if they were to remain.
15.
The Chief Secretary said that the difficulty of recovering
the situation if there was even a short term outflow of people
and money should not be underestimated. The fear among the
mobile group (which was large and was the backbone of Hong Kong)
was not just their concern over events in China during the last
30 years, but also over what insulator could be provided to ensure
that the two life styles could co-exist. The Governor added that it was not just a question of the economy and money : the community was now mature and was looking for a continuity of life
style and the freedoms it enjoyed.
16. Mr Hawke said that the changes which had taken place in
China had been fundamental and were irreversible. The Governor
said it was a question of building up a track record. It was
still only 5 years since the end of the Cultural Revolution and
many in Hong Kong had a direct knowledge of what life had been
like in China.
17. Mr Hawke asked the Governor for his judgement on the outcome
of the talks. The Governor said he believed that it was possible
to get a reasonable agreement but it was crucial that people in
Hong Kong should be convinced that any agreement would work.
Otherwise, there would be a rapid decline. Mr Hawke said his
judgement was that the outcome of the talks would be an agreement
which would allow Hong Kong to continue on broadly the present
lines. This would be consonant with the way China was developing,
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