TNAG-2923-FCO40-4198-Visits-and-proposed-visits-by-Alastair-Goodlad--Minister-of--1993 — Page 24

CONFIDENTIAL

114071 MDHIAN 7360

13. However, as usual, the territory's mood is more complex than appears from surveys of overall confidence levels. The territory's bedrock of confidence owes much to its continuing prosperity, and, in particular at present, to a belief that CPG'S austerity. programme to control domestic inflation will not depress the Hong Kong economy. But some specific events have still created anxiety.

14. The CPG's expulsion of Han Dongfang and the cancellation of his passport has continued to attract great public concern. The community has shown its usual propensity to sympathise with a victim of official injustice (especially at the hands of the CCP from whom so many residents fled). The incident was an unpleasant reminder of the CPG's willingness to put "security" interests ahead of any other considerations (e.g., its bid for the Olympics). Once again, Peking showed itself unable to comprehend the widespread fears its actions arouse in Hong Kong (in this case, about the serious implications for all future SAR citizens of the CPG's arbitrary cancellation of Han's travel documents).

PATTEN