FC040/1544
CONFIDENTIAL
20378
-
1
DATE FOR BOTH SIDES.'
(C) PARAGRAPH 20, REWORD: PEOPLE ARE ABOUT THE FUTURE.
LENGTH OF THE NEGOTIATIONS.
'I WELL UNDERSTAND HOW WORRIED HONG KONG
THIS ARISES PARTLY FROM THE
THEY ARE BOUND TO TAKE TIME. BUT
THE PRIME MINISTER HAS MADE CLEAR THAT HMG IS COMMITTED TO SEEKING A SOLUTION WHICH WILL FIND ACCEPTANCE AMOUNG THE PEOPLE OF HONG KONG. WE ARE DETERMINED TO MAKE A SUCCESS OF THIS. MEANWHILE I KNOW IT IS NOT EASY BUT I WOULD ASK YOU AND INVESTORS TO BE PATIENT. I AM IMPRESSED BY THE BASIC GOOD SHAPE OF THE HONG KONG ECONOMY. THE PRESENT DAMAGE TO THE EXCHANGE RATE AND THE STOCK MARKETS STEMS FROM POLITICAL UNCERTAINTY AND UNHELPFUL STORIES CIRCULATING OUTSIDE THE TALKS. I KNOW YOU UNDERSTAND THE LIMITATIONS ON INTERVENTION IN A FREE ECONOMY BY GOVERNMENTS TO SMOOTH OUT ERRATIC SHIFTS IN THE EXCHANGE RATE. BUT I KNOW THAT THE HONG KONG GOVERNMENT ARE DOING ALL THEY CAN.'
(D)
HOWE
PARAGRAPH 23, FOR 'TESTING' READ 'DETERMINING'.
LEGAL ADVISER LEGAL ADVISER
NEWS D
FUTURE OF HONG KONG
COPIES TO
LIMITED
STR IAN SINCLAIR
MR BURROWS
HD/HKD
HD/FED
MR ROBERTS
ED/PLANNING STAFF
MR MARTIN
HD/PUSD
PS
PS/LADY YOUNG
MR FLOWER
PS/MR LUCE
MR COLES
PS/FUS
SIR J BULLARD
MR GIFFARD
MR DONALD MR WRIGHT
SIR A PARSONS
MR WALKER
ASSESSMENTS STAFF
CABINET OFFICE
PUSD
NO 10 DOWNING STREET
NO 10 DOWNING STREET RESEARCH D OAB 2/82
CONFDENTIAL