CONFIDENTIAL
g)
by "investing vigorously in the future" through its investment programmes, to the extent permitted by the
overall economic climate.
Uncertainty over the future had contributed to the
local economic recession, but the general international
recession had been more important.
h) Both the Hong Kong and Shanghai and the Chartered Banks
were now offering mortgages on the purchase of properties in the New Territories beyond 1997. Although the leases for the properties could not extend beyond 1997, there was no reason why the financing arrangements should not extend beyond that date. The Chinese banks in Hong Kong' were apparently considering offering the same kind of
service.
i) The prospects for stability in China (a general
prerequisite for the successful conclusion of talks on the future of Hong Kong) seemed as good now as any time since 1949, although one could never be 100% certain
of continued stability.
Political Adviser's Office
17 February 1983
~CONÈIDENTIAL