WHICH FOUNDED HONG KONG AND WHICH LEASED FROM CHINA THE NEW TERRITORIES AND THE OUTER ISLANDS FOR A PERIOD OF 99 YEARS, WHICH
IS DUE TO END IN 1977.
(a
IT DOES NOT APPEAR TO HAVE OCCURRED TO THOSE WHO ADVISE ON THIS MATTER THAT THE VARIOUS ASSURANCES OFFERED TO INVESTORS IN HONG KONG SHOULD BE READ AS SIGNALS FROM PEKING THAT IT RECOGNISES THAT UNCERTAINTY ABOUT THE FUTURE IS ALREADY BEGINNING TO IMPINGE ON THE PROSPERITY OF HONG KONG AND THAT THUS THE TIME IS NOW RIPE-TO BEGIN THE PROCESS OF NEGOTIATING A SETTLEMENT ACCEPTABLE TO ALL PARTIES..
IN PAST YEARS, IT HAS BEEN ACCEPTED THAT SOME CLARIFICATION OF HONG KONG'S FUTURE WOULD BE NEEDED BY THE MID-1980S. HOWEVER, IT IS NOW VERY OBVIOUS THAT A CLEAR UNDERSTANDING MUST BE REACHED
THAT IS BEFORE THE RETIREMENT WITHIN THE NEXT COUPLE OF YEARS
OF THE PRESENT GOVERNOR. THOSE WHO ARGUE THAT THE QUESTION MARK OVER HONG KONG'S FUTURE WHICH PERSISTS IN THE MINDS OF LOCAL AND FOREIGN INVESTORS, DESPITE PEKING'S RECENT ASSURANCES, IS HAVING NO DISCERNIBLE IMPACT ON THE ECONOMY, ARE GIVING YOU DANGEROUSLY #ISTAKEN ADVICE.
IN THE PUBLIC SPHERE, HONG KONG IS CONTEMPLATING MULTI- MILLION DOLLAR SCHEMES, SUCH AS THE RECLAMATION AND DEVELOPMENT
WHICH COULD OF THE NORTHERN COAST CF THE ISLAND OF LANTAU POSSIBLY PROVIDE THE SITE OF A SECOND AIRPORT NEEDED BY THE MID-1980S. THIS PROJECT SIMPLY CANNOT BE UNDERTAKEN WITHOUT BETTER ASSURANCES THAN EXIST AT PRESENT ...........
UNCERTAINTY IS AFFECTING THE THIRD STAGE OF HONG KONG'S AZMIRABLE HOME OWNERSHIP SCHEME WHICH WILL REQUIRE BANK FINANCING
CVER 15 YEARS AFTER 1982. IT WILL AFFECT PLANS TO EXTEND THE UNDERGROUND RAILWAY, THE COSTS OF WHICH AT PRESENT ARE HAVING TO BE AMORTISED BEFORE 1997..... INCREASINGLY, INVESTMENT IN THE NEW TERRITORIES IS BECOMING LESS ATTRACTIVE TO INVESTORS, AND THE
PLOUGHING BACK OF PROFITS LESS ATTRACTIVE TO SHAREHOLDERS. UNCERTAINTY ALSO UNDERMINES THE WHOLE AIM OF UPGRADING HONG KONG'S INDUSTRIES INTO MORE CAPITAL-INTENSIVE, SOPHISTICATED INDUSTRIES WHICH WILL REQUIRE LONG-TERM FINANCING. FOR BOTH CHINA AND HONG KONG THE TIME IS RIPE NOW. THOSE WHO ADVICE YOU OTHERWISE ARE
*RONG...
LYQUOTE HALLEHOS6
PILLS
HKYGO (6) FOD NEWS,D
PS/MR BLAKER
NA CORTAZEI
MR HURRAY
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