HKK 121/4
DRAFT
CONFIDENTIAL
DSR 11C
SPEAKING NOTE
CHINA AND HONG KONG WORKING GROUP MEETING:
30 JANUARY 1981
Present State of Business Confidence in Hong Kong
1. The level of confidence among the Hong Kong and inter-
national business community in the future of Hong Kong and the
security of their investment is high. During my visit to Hong
Kong in November, I found a greater readiness among
representatives of banks and business houses to discuss the
future of the territory and most of those I spoke to
considered that there was, in the short term at least, no
serious inhibition to investment there. The impression I
received was that the major American firms still take a
pragmatic view of Hong Kong's prospects' and are content to
maintain their level of investment. This is on the whole less
true for Japanese investors.
Indications of Concern about 1997 in the Business Community
2. Deng Xiaoping's general assurance to investors to "put
their hearts at ease" is broadly accepted in Hong Kong. As
1997 approaches, this confidence will nevertheless wear thin
unless more precise assurances are offered by Peking of their
intentions towards the territory. One present concern is that
the current stability in China may not hold good and that a
more doctrinaire regime may have a less favourable outlook on
Hong Kong. Besides this, there is a growing tendency for
individuals to worry about their personal future in the
territory, and that of their families, post-1997.
The Attitude of the Chinese Government
But
3. It is the Chinese_avowed aim to re-absorb Hong Kong "when
conditions are ripe" It is not in their interests to
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jeopardise the future prosperity of Hong Kong either by word
For Obvinely
must heep ophiens open.
Book no Wray
to oversimplify
do not recognise Treates
*
say
CONFIDENTIAL
/or
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