2. The Chinese Government has reacted very badly to some of these proposals and is building up a vituperative propaganda campaign in Hong Kong against them aimed at forcing Mr Patten to back down. So far opinion in Hong Kong, and the Hang Seng Index, are holding up well, although there are signs of some
nervousness in business circles. Although we have made it clear we are ready to discuss these proposals with the
Chinese, they show no sign of being ready to do so.
The Governor said that at the end of the day he will respect the wishes of Hong Kong people. He will be putting his proposals to the Legislative Council early next year.
3.
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