Conclusions
10. This is a difficult time for Hong Kong, whose economy is totally dependent on export performance and the level of world · trade. There is a real possibility of a sharp, though possibly short-lived, recession in the territory.
11. Nevertheless, provided that global conditions do not deteriorate further, there is a prospect of some improvement in the industrial and manufacturing sectors by next spring. The grounds for this qualified optimism are to be found in Hong Kong's continuing industrial development and diversification, including, the near completion of important new chemical and marine engineering construction plants, both of which are due to come into production in 1975.
Hong Kong & Indian Ocean Dept.
13 December 1974
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1
CONFIDENTIAL
}