increasing by 20-25 per cent annually but there are

now signs of a reduction in the rate of increase.

It is estimated that an increase of 15 per cent in

exports each year is the minimum necessary to provide

the expansion in industry which in turn can provide

the additional jobs needed.

4. So long as Hong Kong remains prosperous, and of

consequential economic benefit to China, the C.P.G.

may remain content to leave the situation as it is;

but should redundancy and large-scale unemployment

in the Colony be caused as the result of falling

exports and the closing down of factories, the

resultant distress could give rise to civil

disorders which might well give China a reason to

intervene in the affairs of the Colony.

NOTHING TO BE WRITTEN IN THIS MARGIN

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