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pointed out, this point is by no means clear cut. My enquiries confirmed
the information obtained by Mr Williamson that for industrial under-
takings in the New Territories the vast majority of mortgages are for a
much shorter period, often as little as 6 years. Moreover there is
impressive new industrial development in the new estates in the New
Territories.)
3.
There is also the non-economic aspect the problem of citizenship
and the status of Hong Kong residents and their children. The Nationality
Bill has focused attention on this and sharpened worries.
4,
Opinions vary widely on the effect on business confidence. Some
leading financiers maintain that there is already a significant out-flow
of investment, particularly to Singapore which is being built up as the
rival to Hong Kong. Others disagree and maintain that the business
confidence problem still remains in the future. The fact, of course,
is that given the lack of foreign exchange control no one can really
be sure of the facts. What is clear is that concern is mounting, the
problem is freely discussed and there is a general belief that 'something
must be done' within two or three years at the latest.
5. No one has any clear ideas as to what action should be taken. Hong
Kong people are prepared to acknowledge the difficulties of the Chinese
Government in expanding on their assurances and recognise that this
situation is likely to continue for some time. In these circumstances,
the attitude tends to be a vague feeling that the British Government
should take some sort of initiative.
/UK/Hong Kong Relations
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