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a basically free economy and domestic and overseas confidence. HMG's

attitude in all this must be to combine confidence in Hong Kong's

ability to run its own affairs with continuing demonstration of our

stake in the Territory. Investment policy and the maintenance of a

robust line by ECGD will be important here. These are the tangible

means of backing up the periodic, and very necessary, Ministerial

reassurances about our commitment.

Brij

1 June 1981

R D Clift

Hong Kong and General Department

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