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4. Mr Paul also highlighted the problem of the Vietnamese Migrants whose numbers were increasing dramatically. The situation was even more difficult today than it had been in 1989 and the patience of the Hong Kong community was waning. In summary, a whole tissue of problems were all coming together and HKG needed the support and understanding of the British Government.
5. The Chairman asked if the Chinese really thought time was on their side. Mr Paul said that the confidence aspect was now beginning to turn against them and the Chinese were becoming concerned about the economic future of the Territory. They had already invested a considerable economic stake in Hong Kong and in Guangdong Province and the PRC could not afford to let events run their course.
6. This prompted a question from DDPR (A) about the continued desirability of holding Ex WINGED DRAGON. Mr Paul responded that we needed to continue signalling our commitment. Conversely any indications of withdrawal would become magnified.
7. CBF Hong Kong then followed with the Hong Kong perspective. He said that the economy was bearing up very well and demand for labour was buoyant. Politically, things were much more difficult. China was perceived as trying to erode HKG's autonomy; there were suspicions about HMG's intentions; there was a liberal element which was becoming more vociferous. The Bill of Rights had been watered down; there was a new democratic element to be contended with, which the PRC viewed as a subversive threat. There was the airport issue and the use of leverage by China which it was felt was undermining the Joint Declaration. Morale in the public services was coming under increasing strain. CBF had detected a slight increase in anti-British sentiment (matched by anti-PRC feelings). In sum there were some increasing signs of strain in the Territory.
8. The Garrison was committed to maintaining sovereignty. A balance had to be struck between continuing as before and encouraging local forces by the provision of training and other support. They were giving all assistance to the police and RHKAAF to take over their new roles. The RHKP had taken over the first sector on the border and would shortly take over the second sector. They were making a reasonable job of it and the IIs were under reasonable
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