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3*R་
CONFIDENTIAL
50
Region of
restore the
years
after Hong
Kong becomes a Special Administrative
the People's Republic of China in 1997, did much to
confidence of the people of Hong Kong, who for the
previous two years had felt uncertainty and anxiety about what the
future held in store. Following the announcement of the agreement
the future looked much more assured.
54.
It remains the policy of Her Majesty's Government to maintain
confidence in Hong Kong and to promote its stability and prosperity.
So far as the development of representative government is concerned,
following the recent changes in the
composition of the Legislative
Council, the coming year will be a period of
of consolidation of the
which
have
ou t
rather
reforms
already been carried
than of new initiatives. On the economic front, the outlook is
satisfactory, notwithstanding the possibility that the growth rate of demand for domestic exports in Hong Kong's main export markets
will be low; employment is expected to remain stable and the rate of
inflation low; the recovery of the property market is likely to
continue; and the prospects for
re turn a
a
to balanced budget in
1986-87
The Sino-British Joint Liaison Group and Land
Commission have got off to good starts.
good. are
to
55. Her Majesty's Government remain committed
the territory of
Hong Kong and
its people. They will continue to
their fulfil
for Hong Kong's sound responsibilities
administration and to look
to
after Hong Kong's interests internationally. They will work to
implementation of the Sino-British
ensure
the
smooth
Declaration, and
stability.
to
economic preserve
and prosperity
Joint
social
18
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CONFIDEN TIAL