4.
Mr Cartland concluded that the environment had changed adversely during the past few months. The row over localisation had aroused xenophobia eg in Legco and more widely. The proposed HMOCS scheme responded to the call for localisation. He did not know how the press had obtained details of the negotiations: the Association had no agenda for going public as long as there was reasonable hope of a solution. Mr Wooey acknowledged that there had been progress since discussion first opened. But the time would come when decisions were needed. Mr Goodlad noted all these concerns. He would carry on trying to achieve a total package but had no wish to set deadlines.
cc: PS/Mr Goodlad
Mr Hum
Mr Morris, HKD
PS/Governor of Hong Kong
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Private notes are available after approval.