10
Mr Donald
CONFIDENTIAL
акканц
RELOVED IN REGISTRY NO. 51
23 FER
DECK OFFIDER INDEX
! RECISTRY
PA
Action Takon
3
HONG KONG ANNUAL REVIEW
1.
2.
I attach the Hong Kong Annual Review for 1980.
The Review records a surprisingly good year for Hong Kong in the light of world economic and other problems. Relations with China developed well. Illegal immigration took over from Vietnamese refugees as the major issue. It appeared to have been largely solved by the end of the year. The much publicised take-over moves against British 'Hongs' by Hong Kong Chinese are well put in perspective in the Review.
3.
However, the Governor sounds a cautionary note on the economy. Increased rents and the drop in real wages at a time of unprecendented inflation are beginning to offset Hong Kong's affluence and the bite of recession is likely to be felt more keenly this year.
4.
The Governor draws attention to strains in UK/Hong Kong relations, particularly over student fees and the Nationality Bill. The latter has caused a renewed stir in Hong Kong in the past 2 weeks. Such issues will continue to cause problems in 1981.
The renegotiation of the Multi-Fibre Arrangement is likely to add a fresh point of friction.
I am arranging for the Review to be printed in the General Series. I have thanked Sir M MacLehose.
5.
3 February 1981
сс
Private Secretary
PS/LPS
PS/Mr Blaker
PS/PUS
Sir E Youde
FED
Slip
р
R D Clift
Hong Kong and General Department
How right the
A concise account. Geromar was about the impact of the
Natimelity Bill!
CONFIDENTIAL
D23⁄41/2 Hagd
Aped 19/2