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Confidence in Hong Kong
g.
Sir E Youde said that he had discussed the question with Mr Li Ka Shing and with the Editor of the magazine 'Ming Pao'. Mr Li had taken the line that his investment in the plan for the conversion of ash from the Castle Peak Power Station into cement was a sign of confidence but this became less convincing when he admitted that the return on his capital would come in 7 years. The Editor of 'Ming Pao' had foreseen problems to confidence developing amonth young technical managers who would be doubtful about career opportunities in Hong Kong. He also believed that the trend already apparent for industries, particularly textiles, to shift some processes from Hong Kong to other countires might be accelerated by worry over the future. This, in turn, could affect the property market and lead to a downward spiral in confidence.
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RD Clift
13 April 1981
CC
Mr Donald
Mr Davies, FED
Hong Kong and General Department
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