TNAG-1749-FCO40-2468-Visit-by-Sir-Geoffrey-Howe--Secretary-of-State-for-Foreign-a-1988 — Page 136

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MDHIAN 07

HAS SLOWED SOMEWHAT SINCE THE THIRD QUARTER OF LAST YEAR. GROWTH IN

EXPORTS HAS ALSO SLOWED BUT IS STILL SUBSTANTIAL. IN APRIL DOMESTIC EXPORTS INCREASED BY 10 PERCENT, AND RE-EXPORTS BY 45 PERCENT, OVER THE SAME MONTH IN 1987. IN MARCH DOMESTIC EXPORTS HAD BEEN 3 PERCENT

LOWER THAN THE PREVIOUS YEAR, EVEN THOUGH RE-EXPORTS HAD CONTINUED

TO GROW.

4.

HONG KONG RETAINS ITS AIR OF FRENETIC ACTICITY. INFRASTRUCTURAL

AND DEVELOPMENT PROJECTS PROCEED APACE AND CONTRIBUTE TO A BETTER

QUALITY OF LIFE. FOREIGN INVESTORS AND RETURNING EMIGRANTS CONTINUE

TO BELIEVE THAT THERE IS MONEY TO BE MADE. THE MAIN PROBLEM IS STILL

A SHORTAGE OF LABOUR, PARTICULARLY IN THE CONSTRUCTION INDUSTRY.

THE BASIC LAW

·

5. THE DRAFT BASIC LAW, PUBLISHED ON 28 APRIL, HAS ATTRACTED A GOOD DEAL OF MEDIA COVERAGE, MUCH OF IT CRITICAL. REPORTING ON THE

MODALITIES OF COMMENT HAS TENDED TO OUTPACE CONSIDERED COMMENT ON THE DRAFT ITSELF MANY PEOPLE REMAIN APATHETIC ABOUT THE DRAFT OR FIND IT TOO COMPLICATED TO STUDY. MOST HAVE NOT READ IT. IT WILL TAKE TIME BEFORE OPINION BEGINS TO COALESCE ON A FEW KEY ISSUES. EVEN

THEN INTEREST IS LIKELY TO BE LIMITED LARGELY TO THE EDUCATED MIDDLE- CLASS. DURING THE CONSULTATION EXERCISE MANY PEOPLE WILL BECOME

AWARE FOR THE FIRST TIME OF THE PERCEIVED SHORTCOMINGS IN THE BASIC

LAW. THEIR CONFIDENCE WILL BE BOOSTED IF THE CHINESE RESPOND

SENSITIVELY TO CRITICISMS OF THE DRAFT AND SHOW WILLINGNESS TO

AMEND IT. IT WILL BE DAMAGED IF THE CHINESE BEHAVE IN A HEAVY-HANDED

WAY.

REFUGEES AND IMMIGRANTS

6. A GREAD DEAL OF PUBLIC ATTENTION AND ANXIETY HAS BEEN FOCUSSED ON

THE MASSIVE INFLUX OF VIETNAMESE BOAT PEOPLE SINCE THE BEGINNING OF 1988. THE PUBLIC, WITH FEW EXCEPTIONS (MAINLY EXPATRIATES AND WESTERN-EDUCATED LIBERALS), WANT THE GOVERNMENT TO ABANDON ITS POLICY OF FIRST ASYLUM. THEY FIND IT DIFFICULT TO UNDERSTAND WHY THIS HAS NOT ALREADY BEEN DONE AND EVEN WHY ARRIVALS CANNOT BE SENT BACK TO VIETNAM. AS EVER, PUBLIC PERCEPTIONS ARE COLOURED BY THE CONTRASTING TREATMENT OF ILLEGAL IMMIGRANTS FROM CHINA WHO, DESPITE THEIR CLOSER TIES OF RACE AND EVEN KINSHIP, ALMOST WITH EXCEPTION REPATRIATED. THIS CONTRAST HAS RECENTLY BEEN HEIGHTENED BY THE PROSECUTION OF 67

ILLEGAL IMMIGRANTS FOUND WORKING ON BUILDING SITES, A MEASURE MADE NECESSARY BY THE SIGNIFICANT INCREASE IN THE NUMBER OF IIS DETECTED

SO FAR THIS YEAR.

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