LAW AND ORDER
CONFIDENTIAL
102151
MDHIAN 5889
11. PUBLIC ANXIETY OVER LAW AND ORDER HAS EASED SOMEWHAT SINCE
LORD CAITHNESS LAST VISITED THE TERRITORY. BUT A SPATE OF DRAMATIC ARMED ROBBERIES HAS MEANT THAT THE ISSUE REMAINS A MAJOR COMMUNITY CONCERN. THE PUBLIC IS ACCUSTOMED TO VERY HIGH STANDARDS OF PUBLIC ORDER AND IS UNDERSTANDABLY ANXIOUS ABOUT ANYTHING WHICH SUGGESTS THAT THESE MIGHT BE UNDER THREAT. GENERALLY, HOWEVER, CONFIDENCE IN THE POLICE FORCE REMAINS HIGH. PUBLIC APPREHENSIONS ABOUT ARMED CRIMINALS HAVE BEEN ALLEVIATED
SLIGHTLY BY INDICATIONS OF IMPROVED CO-OPERATION FROM THE GUANGDONG POLICE AUTHORITIES, ALTHOUGH THEY FLARE UP WITH EACH
NEW INCIDENT.
THE QUALITY OF PUBLIC SERVICES
12. THIS ISSUE HAS EMERGED IN VARIOUS FORMS DURING THE PAST FEW
MONTHS. INDUSTRIAL RELATIONS DIFFICULTIES IN THE CIVIL SERVICE EARLIER IN THE YEAR CAUSED SOME PUBLIC ANXIETY. BUT THE EMPHASIS HAS SHIFTED IN RECENT MONTHS TO A GENERALISED WORRY ABOUT WHETHER EXPENDITURE ON THE NEW AIRPORT WILL RESULT IN A CUT-BACK IN PUBLIC SERVICES. AN EFFORT WILL BE NEEDED DURING THE NEXT FEW MONTHS TO ALLAY PUBLIC CONCERN ON THIS POINT. BUT, DESPITE THIS, DEMANDS FOR NEW AND IMPROVED PUBLIC SERVICES FROM A MORE SOPHISTICATED, AFFLUENT AND POLITICALLY-CONSCIOUS COMMUNITY COULD CREATE UNCOMFORTABLE PRESSURES ON AVAILABLE PUBLIC FUNDS (E.G., RENEWED INTEREST IN A CENTRAL PROVIDENT FUND).
BCCI
13. HONG KONG HAS NOT BEEN ABLE TO ESCAPE THE FALL-OUT FROM THE CLOSURE OF THE BANK OF CREDIT AND COMMERCE INTERNATIONAL'S BRANCHES IN EUROPE AND NORTH AMERICA. ALTHOUGH THE HONG KONG SUBSIDIARY HAS NOT BEEN IMPLICATED IN THE ALLEGATIONS OF FRAUD, AND IS GENERALLY THOUGHT TO BE FINANCIALLY SOUND IN ITSELF, IT HAS NOT BEEN POSSIBLE TO INSULATE IT FROM THE TROUBLES OF THE PARENT ORGANISATION. THE BCC (HK) REMAINED OPEN ON SATURDAY, 6 JULY, BUT WAS CLOSED BY THE COMMISSIONER OF BANKING ON MONDAY 8 JULY. ON 17 JULY, A LIQUIDATOR WAS APPOINTED AT THE REQUEST OF THE HKG.
14. LOCAL DEPOSITORS HAVE LAUNCHED A VOCIFEROUS CAMPAIGN AIMED AT SECURING A HKG GUARANTEE FOR THEIR DEPOSITS. ALTHOUGH THERE IS POPULAR SYMPATHY FOR THEIR PLIGHT THERE IS LITTLE SUPPORT FOR THEIR DEMANDS THAT PUBLIC FUNDS TO BE USED FOR THIS PURPOSE. WE ARE MAKING EVERY EFFORT TO PERSUADE THE LIQUIDATOR TO RELEASE 25
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PAGE CONFIDENTIAL
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