CONFIDENTIAL
024064
MDHIAN 4746
8.
HOWEVER, THEIR OPTIMISM IS TEMPERED BY A WISH TO SEE DENG CONSOLIDATE HIS REFORMS. THE TERRITORY IS WELL AWARE OF DENG'S MORTALITY AND THE SIGNIFICANCE OF THE FACT THAT HE HAD TO COME SOUTH IN PERSON TO GENERATE POLITICAL MOMENTUM IN SUPPORT OF HIS
PROPOSALS.
CHINA AND HONG KONG
9.
ALTHOUGH HONG KONG HAS REACTED ENTHUSIASTICALLY TO DOMESTIC DEVELOPMENTS IN CHINA THIS YEAR, THE COMMUNITY'S UNDERLYING ATTITUDES TOWARDS PEKING REMAIN AMBIGUOUS. MISTRUST OF THE CHINESE GOVERNMENT'S INTENTIONS TOWARDS THE TERRITORY CONTINUE TO BE DEEP-ROOTED AND WIDESPREAD: BUT THERE HAVE BEEN INDICATIONS IN RECENT MONTHS THAT HONG KONG PEOPLE ARE COMING TO TERMS WITH THE PROSPECT OF THE TRANSFER OF SOVEREIGNTY. THEY RECOGNISE THAT CHINA, AS THE FUTURE SOVEREIGN POWER, HAS CERTAIN LEGITIMATE EXPECTATIONS OF A CLOSER RELATIONSHIP WITH BOTH THE BRITISH ADMINISTRATION AND THE POLITICAL LEADERS OF HONG KONG. THEY ALSO RECOGNISE THAT HONG KONG'S BUSINESS FUTURE DEPENDS MORE AND MORE ON THE TERRITORY'S ABILITY TO FIND MARKETS, MANUFACTURING FACILITIES AND INVESTMENT OPPORTUNITIES WITHIN THE CHINESE MAINLAND.
10.
THUS, THE APPOINTMENT OF LOCAL COMMUNITY LEADERS AS HONG KONG ADVISER TO THE CHINESE GOVERNMENT CAUSED MUCH MEDIA COMMENT BUT LITTLE STIR AMONG THE COMMUNITY AS A WHOLE. IN SOME CASES, THOSE APPOINTED WERE FAMILIAR FIGURES, WITH LONG RECORDS OF PUBLIC SERVICE (INCLUDING MEMBERSHIP OF THE EXECUTIVE AND LEGISLATIVE COUNCILS). A SIMILAR REACTION GREETED THE ESTABLISHMENT THIS MONTH OF A PRO-CHINA POLITICAL PARTY (THE DEMOCRATIC ALLIANCE FOR THE BETTERMENT OF HONG KONG). ITS CREATION WAS SEEN AS A NATURAL RESPONSE TO THE CONSTITUTIONAL REFORMS THAT HONG KONG HAS INTRODUCED IN RECENT YEARS RATHER THAN AS A CAUSE FOR ALARM.
WILSON
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