UK EYES A

supplied. As planning for capital investment in the colony has increasingly to take

account of the 1997 cut-off further reassuring statements from senior Chinese cadres

probably will/be made. Finally Chairman Hua Kuo-feng is also reported to have endorsed the

value of Hong Kong. It will be evident to the Chinese government that even if they

can expand their activities in other east Asian Centres such as Singapore and

Manila, where they would never be allowed to gain such a foothold in banking and

domestic finance as they have in Hong Kong, there is nowhere that, in the short to

medium term, can offer the unique economic advantages to China that Hong Kong

offers.

16 UK EYES A

THIS IS A COPY

THE ORIGINAL HAS BEEN RETAINED IN THE DEPARTMENT UNDER SECTION 3 (4) OF THE PUBLIC RECORDS ACT 1958

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