SECRET LOCSEN
HONG KONG VIEW: POLITICAL/ECONOMIC SURVEY
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ENCLOSURE 2 TO D/ACDS (O)/181/34 DATED 24 SEP 92
Main event in Hong Kong since the last meeting is the arrival of the new Governor and he has had a considerable impact.
More a triumph of style than substance, inevitably so at this early stage.
Substance will start with the new Governor's opening speech to the Legislative Council on 7 October.
Relations with the PRC have remained strained, not only on the matter of constitutional development but on the Airport and the whole range of other matters discussed at the Joint Liaison Group.
Mainland's sympathisers in the Territory showing signs of becoming concerned that China's tactics could backfire if they cause sufficient delay to the project to put a substantial extra financial burden on the Special Administrative Region Government
post
1997.
Other aspects of confidence are holding up remarkably well.
Economic scene has a buoyancy which can only be the envy of most of the Western world at the moment.
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Guard against complacency.
GARRISON SURVEY
Financial Aspects
Budget Structure HK HLB. The Hong Kong structure was revised on 1 April 1992 with the introduction of 6 full BLBS and a HQ IHLB to underpin HLB.
Cash Allocation 1992/93. The allocation for 1992/93 at £155m was a welcome change from 1991/92.
Reorganisation of Comd Structure. Concentrates the majority of Army units under one HQ (48 Brigade).
comds.
Devolves responsibilities downwards to the 3 single service
но Sp Tps has been disbanded and the staff posts redistributed within BFHK to assist 48 Brigade with its new responsibilities and to manage better aspects of our withdrawal.
No change to RN/RAF.
SFEW 1 (FEW2\ECONOMIC.COP\HR)
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