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Legal advice is that it would not be possible to use a different
designation than that in the Nationality Act without an alteration.
in legislation and the Lord Privy Seal explained this in a telegram
to the Governor last year. I think we should try to prevent false
hopes being raised in Hong Kong and we shall be writing separately
about this.
4. On the economic front Hong Kong did remarkably well in 1981
with a general improvement in the latter part of the year. It
nevertheless remains true that future prospects are dependent on
the course of the American economy. Moreover the Hong Kong domestic
economy is a highly speculative (although highly successful) one.
The recent drops in land prices and in the share index have so
far been mainly reflections of common sense. Nevertheless there is
At present they
an underlying volatility in investors' attitudes.
still see Hong Kong as among the best bets in the area. Good
management as well as luck will play an important part in
preserving their confidence. The Hong Kong Government are acutely
aware of the need to approach problems such as money supply control
with great caution, but they will have to watch this carefully if
inflation is not to get out of hand.
5. I am arranging for the Review to be printed in the General
Series. I have thanked the Governor.
8 March 1982
cc Sir E Youde
PS/PUS
Mr Donald o/r
Bip
R D Clift
Hong Kong and General Department
The Lord Privy Soal may wish to see the despatche and minite above, on
his netwm. Aplikar
19/3
CONFIDENTIAL
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