CONFIDENTIAL
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GOVERNMENT'S THINKING. THE PEOPLE OF HONG KONG ARE WELL ABLE TO
JUDGE FOR THEMSELVES WHAT FUTURE ARRANGEMENT WOULD AND WOULD NOT
INSPIRE CONFIDENCE.
7. ON WHY HMG ARE NOT SAYING MORE ABOUT THEIR POSITION IN TALKS
YOU SHOULD SAY THAT BY AGREEMENT THE LATEST OF THE TALKS ARE
CONFIDENTIAL. IN OUR VIEW STATEMENTS MADE OUTSIDE THE TALKS ARE
NOT HELPFUL. THE PLACE FOR AN EXCHANGE OF VIEWS IS THE
CONFERENCE TABLE.
8. ON RECENT FLUCTUATIONS IN HONG KONG STOCK MARKET AND DOLLAR
EXCHANGE RATES YOU MAY SAY THAT ALTHOUGH UNCERTAINTY ABOUT FUTURE
UNDOUBTEDLY AFFECTS CONFIDENCE. THERE ARE
OTHER FACTORS, EG WORLD RECESSION, STRENGTH WORLDWIDE OF US
DOLLAR AND HIGH INTERNATIONAL INTEREST RATES. GIVEN UNDERLYING
STRENGTH OF HONG KONG'S ECONOMY, THE HONG KONG DOLLAR IS MUCH
UNDERVALUED.
HOWE
FUTURE OF HONG KONG
TAEMIND
COPIES TO
MR COLLINS, WED. SIR IAN SINCLAIR MR BURROWS
/FED
MR ROBERTS
D/PLANNING STAFF
ED/PUSD
MR MÄRTIN
PS
MR FLOWER
PS/LADY YOUNG
PS/MR LUCE
PS/PUS
SIR J BULLARD
MR GEFFARD MR DONALD MR WRIGHT
MR COLES
SIR A PARSONS
LEGAL ADVISER LEGAL ADVISER
NEWS D
ASSESSMENTS STAFF
CABINET OFFICE
PUSD
NO 10 DOWNING STREET
NO 10 DOWNING STREET
MR WALKER RESEARCH D OAB 2/82
MR GOODALL, CABINET OFFICE
CONFIDENTIAL