Much speculation about form of slide confidence
No firm evidence yet but increasing rumours
of withdrawal of money
Reluctance medium term industrialists
to expand
Real danger is major flight of
capital; fall in NK $
HMG's interest
Do we care?
Economic balance of UK/HK trade and investment
about even. If no HK would not invent
Problem lies in political consequences.
of our presence:
a)
obligations to people of Hong Kong
b) likely outflow of people some with legal
or moral claim to entry to UK
c) difficulty of governing colony with probable breakdown of morale in Civil
Service and Police