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with the Chinese leaders, but he was sure that Mr Fung would be careful to keep in touch with the Governor in order to get a steer when matters appeared to be moving into the inter- governmental sphere.
Lord Shepherd
4.
referred to the normal 15-year mortgage span; by 1982 the remaining lease period would be less than this. Mr Fung said that he trusted HMG was worried in case Hong Kong should be neglected because of other major issues. People like him felt worried but were powerless to act. had felt some frustration when he had raised the problem in Peking with Yao Yi-Lin, Bo Yibo and Liao Chengzhi.
He
5. Mr Donald stressed the importance of influential business- men showing their confidence in Hong Kong by commercial activity. Mr Fung said that nevertheless worry about the future was already having some effect on investment decisions just as the new Nationality Law made people wonder whether they should move their money out of Hong Kong in order to provide for their children. Lord Shepherd said that the main problem would come when the inflow of investment to Hong Kong dried up.
6. Mr Donald stressed that Hong Kong remained a very good investment risk compared with many places in the world. He emphasised that HMG would stand by its obligations to the Territory as had successive governments of different parties.
7. Mr Fung expressed gratitude for this exchange of views. He undertook to keep in close touch with the Governor and Political Adviser in Hong Kong on his discussions with Chinese leaders.
Distribution:
HKGD to enter
Mr Donald
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Mr Elliott, FED
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