SECRET
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3. Hong Kong attitude
Hong Kong has lived with uncertainty for some
time and survived. Past tendency to shun 1997
question because:
a)
b)
relations with China unsure and risk
of exacerbation;
despite a) Chinese apparently avoiding
extreme action (e.g. in 1967);
c) most investors short-term (5 years)
But 80's have brought 1997 into next decade.
Crown leases in NTs only till 1997.
15 year mortgages.
Now subject of debate.
Good relations with China and Chinese reassurances
(hearts at ease hav
hearts at ease have helped but have not been
sufficient.