"They tend to be civil servants, often diplomats drawn from the Foreign Office, who may be very pleasant, intelligent people, but once they get inside the Palace they're riveted to the status quo and they lose track of public opinion in the real world"

In this quote, the speaker is explaining a specific group of individuals who work as civil servants, especially in the diplomatic field. These people are typically selected from the Foreign Office and are generally seen as amiable and smart. Nevertheless, once they enter the Palace, which could refer to a federal government or administrative setting, they become focused on maintaining the existing state of affairs and lose touch with the opinions and concerns of the general public. This recommends that these civil servants might become detached from the realities of the outdoors world and might prioritize protecting the status quo over attending to the requirements and desires of individuals they serve.