2404
HKGOVT G
24145
YY TWX
RTRLDN G
776 301158 DXA371
YAX071 30-1149 YSA235
1925: PROHONGA ID LONDON ONE:
GIS 753/81 COMMISSIONER EXDIS NOVEMBER 30, 1981
VRS A. 13 194, B. 8 155, C. 17 245,
LEGALS D. 182, E. 4 288, F. 48 451,
30.11.81.
ILLEGALS G. 17, H. 824, I 10 218, J. 6, K. 1 471.
THE BRITISH PRIME MINISTER, MRS MARGARET THATCHER, IS EXPECTED TO RAISE THE QUESTION OF HONG KONG'S FUTURE DURING A VISIT TO PEKING PLANNED FOR NEXT YEAR SAID THE SOUTH CHINA MORNING POST IN
A FRONT-PAGE LEAD TODAY.
THE PAPER SAID THAT THIS WOULD BE HER FIRST VISIT TO CHINA AS PRIME MINISTER, HOWEVER, THE POST WRITER, MICHAEL JONES, GAVE NO SOURCE FOR HIS STORY ABOUT THE VISIT. HE SAID THAT SEPTEMBER NEXT YEAR, WHEN PARLIAMENT IS NOT SITTING, WAS THE MOST LIKELY TIMING.
+THE INCLUSION OF HONG KONG'S FUTURE ON THE PROJECTED PEKING AGENDA REFLECTS GROWING CONCERN THAT THE TERRITORY'S FUTURE CANNOT BE LEFT IN DOUBT FOR MUCH LONGER WITHOUT RUNNING A NEEDLESS RISK OF COLLAPSE OF CONFIDENCE IN HONG KONG'S LONG-TERM STABILITY+, SAID THE STORY.
MUCH OF THE LENGTHY REPORT WAS TAKEN UP WITH A REVIEW OF THE HISTORICAL SETTING OF THE NEW TERRITORIES LEASE AND WITH CONSIDERATION OF VARIOUS OPTIONS WHICH HAVE BEEN PUT FORWARD IN THE PAST. THERE WERE NO NAMED QUOTES AND ONLY VERY GENERAL INDICATIONS OF SOURCES.
MORE HKG
NNNN
ZCZC LTX781 301209 DXB961 YAX072 30-1152 YQS183 YY TWX
:PROHONGA ID LONDON TWO:
GIS 763/81 (ADD)
HONG KONG'S ECONOMY IS EXPECTED TO SHOW A SLIGHTLY BETTER GROWTH RATE IN THE COMING YEAR, THOUGH BOTH ITS VISIBLE TRADE
DEFICIT AND CURRENT ACCOUNT DEFICIT WILL CONTINUE TO INCREASE SHARPLY.
THIS IS THE VIEW OF MR SANDI SUMMERLIN, A CHEMICAL BANK ECONOMIST, IN A REPORT PUBLISHED TODAY. HE SAID THE REAL GROWTH RATE WOULD SLOW TO ABOUT EIGHT PER CENT THIS YEAR BECAUSE OF WEAKER DEMAND FOR DOMESTIC EXPORTS.
IN ADDITION TO PROTECTIONISM AND SLOWER GROWTH ABROAD, LOCAL MANUFACTURERS ARE FACED WITH HIGH INTEREST RATES AND RISING COSTS OF INPUTS SUCH AS RAW MATERIALS AND SEMI-MANUFACTURED PRODUCTS. THE REAL ESTATE 300M AND STOCK MARKET RISES HAVE DRAWN FUNDS AWAY FROM CAPITAL INVESTMENT AND THE TEXTILE INDUSTRY HAS BEEN HARD-HIT. BUT CONSTRUCTION IS GROWING AND CHINA DEVELOPMENTS HAVE KEPT UP
DEMAND FOR OFFICE SPACE.
NEXT YEAR, HE SAID, HONG KONG'S DOMESTIC EXPORTS SHOULD BENEFIT FROM AN EXPECTED INCREASE IN ECONOMIC ACTIVITY, IN THE INDUSTRIAL WORLD. AS A RESULT, THE TERRITORY'S REAL GROWTH RATE.
SHOULD ACCELERATE TO ABOUT 8.5 PER CENT.
INFORMS HONGKONG/REUTER
ค
A