CONFIDENTIAL
FM HONG KONG
TO DESKBY 251300Z FCO
TELNO 2003
OF 25103OZ MAY 88
CONFIDENTIAL
047733
MDHIAN 0719
SECRETARY OF STATE'S VISIT: CURRENT MOOD
SUMMARY
IN GENERAL HONG KONG PROSPEROUS BUT NERVY. ECONOMY DOING WELL
ALTHOUGH NOT EXPANDING AS FAST AS LAST YEAR. LABOUR SHORTAGE A
PROBLEM, WITH EMIGRATION A CONTRIBUTING FACTOR FOR SOME MIDDLE MANAGEMENT POSTS. BASIC LAW CURRENTLY TOP OF THE FUTURE-RELATED
ISSUES: BUT COMMENT STILL GENERAL AND UNFOCUSSED. MOST PEOPLE HAVE
NOT READ IT: NEVERTHELESS, CONCERN ABOUT WHAT IT IMPLES FOR FUTURE
CHINESE INTENTIONS AND BEHAVIOUR. MUCH WORRY ALSO ABOUT INCREASING ARRIVALS OF VIETNAMESE BOAT PEOPLE. ANY ISSUE INVOLVING UK (VIETNAMESE REFUGEES, BN(0) PASSPORTS) LOOKED AT WITH SCEPTICAL INTENSITY TO JUDGE DEGREE OF HMG'S COMMITTMENT TO HONG KONG.
CONTINUING NERVOUSNESS ABOUT THE TRANSITION TO 1997.
GENERAL
2.
THE GOVERNMENT CONDUCTS REGULAR PUBLIC OPINION POLLS TO GUAGE POPULAR OPINION ON CURRENT ISSUES AND ON THE GOVERNMENT'S PERFOR- MANCE. THE LATEST SUCH POLL WAS CONDUCTED IN DECEMBER. 80 PERCENT
OF THOSE POLLED SAID THEY WERE (QUOTE) HIGHLY SATISFIED (UNQUOTE) OR
(QUOTE) SATISFIED (UNQUOTE) WITH THE GOVERNMENT'S OVERALL PERFOR- MANCE. THE GOVERNMENT SCORES HIGH MARKS FOR ITS HANDLING OF DOMESTIC
ISSUES. THE FUTURE OF HONG KONG RANKS THIRD AS A PERCEIVED PROBLEM
BEHIND TRANSPORT AND HOUSING.
THE ECONOMY
3. THE BOUYANT STATE OF THE ECONOMY IS A MAJOR CONTRIBUTING FACTOR
TO THIS COMPARITIVELY ROSY VIEW OF LIFE IN THE PRESENT AND THE
IMMEDIATE FUTURE. UNEMPLOYMENT HAS REMAINED VERY LOW AT 1.6 PERCENT FOR THE THREE MONTH PERIOD UP TO MARCH. INCREASES IN WAGE RATES, PARTICULARLY IN THE BUILDING AND CONSTRUCTION SECTOR, HAVE BEEN SUBSTANTIAL. THE PROPERTY MARKET IS ACTIVE: PRICES IN SOME SECTORS HAVE EXCEEDED THE LEVELS REACHED PRIOR TO THE STOCK MARKET CRASH OF OCTOBER 1987. CAPITAL INVESTMENT IS STILL GROWING, ALTHOUGHT IT
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