The Rt Hon Humphrey Atkins MP

-2-

29 March 1982

I have stressed to Mr Fung King Hey that it is not to the interests of either the PRC or Her Majesty's Government in Hongkong that anything other than commercial concern be expressed and Mr Fung King Hey will correspond with them as a result of his various meetings and I have no doubt that he will be informing the Governor also in regard to his visit.

As I say, confidence is not as strong as it was 6 months ago. It is difficult to judge to what extent it is due to a slowing down of overseas investment attributable to the general recession and the fall in oil prices and to what extent it is due to the eventual prospects of Hongkong. I have no doubt at all that an assurance in the latter is certainly worthy of it being sought if it can be obtained.

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