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THE UNOFFICIAL MEMBERS OF THE EXECUTIVE COUNCIL VISITED LONDON FOR DISCUSSIONS IN JANUARY AND WILL VISIT AGAIN FROM 4-6 APRIL. 6. THE SECRETARY OF STATE WILL VISIT PEKING ON 15-18 APRIL. AS WELL AS OTHER BILATERAL AND INTERNATIONAL SUBJECTS, HE WILL HOLD TALKS ON HONG KONG WITH THE CHINESE FOREIGN MINISTER, WU XUEQIAN, AND OTHER CHINESE LEADERS. HE WILL THEN TRAVEL ON TO HONG KONG
FOR FURTHER DISCUSSIONS.
7. THE COMMON AIM OF THE TALKS REMAINS THE MAINTENANCE OF HONG KONG'S STABILITY AND PROSPERITY. WE ARE STILL SEEKING AN ARRANGEMENT CONSISTENT WITH THIS AIM, WHICH WILL BE ACCEPTABLE TO PARLIAMENT, THE CHINESE GOVERNMENT AND THE PEOPLE OF HONG KONG. WE WANT THE BEST POSSIBLE DEAL FOR THE HONG KONG PEOPLE. 8. WE BELIEVE CONTINUED STABILITY AND PROSPERITY IS BEST ASSURED BY CONTINUITY OF SYSTEMS (EG FINANCIAL, LEGAL, COMMERCIAL)
AND MINIMAL INTERFERENCE FROM OUTSIDE.
9. THE ATMOSPHERE OF THE TALKS IS GOOD AND WE ARE OPTIMISTIC
ABOUT REACHING A SATISFACTORY OUTCOME.
10. NO OVERALL TIMETABLE HAS BEEN AGREED FOR THE TALKS. WE, LIKE THE CHINESE, WANT A SATISFACTORY SETTLEMENT AS SOON AS POSSIBLE TO END THE UNCERTAINTY. BUT IT IS MORE IMPORTANT TO FIND THE
RIGHT SOLUTION THAN TO RUSH. THE CHINESE HAVE MENTIONED A DEADLINE OF SEPTEMBER 1984, BUT THIS DOES NOT RULE OUT A CONTINUATION OF THE TALKS THEREAFTER. OF COURSE, IT WILL BE FOR
PARLIAMENT TO GIVE ITS APPROVAL TO ANY AGREEMENT
WHICH MIGHT BE REACHED IN NEGOTIATION.
11. HONG KONG'S ECONOMY IS IN EXCELLENT SHAPE AND AN EXPORT-LED RECOVERY IS CLEARLY UNDERWAY. IN 1983 HONG KONG'S EXPORTS INCREASED BY 26 PER CENT AND IMPORTS BY 23 PER CENT OVER 1982 LEVELS. A GROWTH RATE OF OVER 6 PER CENT IS EXPECTED IN THE CURRENT FINANCIAL YEAR. UNCERTAINTY OVER THE FUTURE PERIODICALLY AFFECTS THE HONG KONG STOCK MARKET, BUT IT IS IMPORTANT NOT TO LOSE SIGHT OF OTHER FACTORS FROM THE INTERNATIONAL ECONOMY WHICH CAN AFFECT SUCH INDICES. SINCE OCTOBER 1983 THE HANG SENG INDEX HAS SHOWN A STRONG OVERALL RISING TREND. THE EXCHANGE VALUE OF THE HONG KONG DOLLAR, WHICH HAS BEEN LINKED TO THAT OF THE US
DOLLAR IS STEADY.
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