CONFIDENTIAL
1
4. HIIT HIS THINS KIND OF FEELING WHICH LIES BEHIND THE RECENT REVIEW OF HONG KONG '86** WITH ITS VRVND FRONG PAGE TITLE ''JITTERY CINTY'' IN THE FAR EASTERN ECONOMIC REVIEW (''FINE HOPES FADE TO FEARS'') AND BEHIND THE HINTERPRETATION IN THE FINANCIPAL PRESS OF INCREASING SOFTNESS #N THE MMDDLE LEVEL RESIDENTINAL PROPERTY MARKET AS ''DEFINITE SIGNS THAT THOSE PEOPLE WHOSE BELIEF IN HONG KONG'S FUTURE IS INTEGRAL TO ITS FUTURE WELL-BEING ARE STARTING TO HAVE
SECOND THOUGHTS''.
5. HN ALL THE HONG KONG GOVERNMENT SAYS AND DOES WE SEEK TO COUNTER THESE TRENDS. BUT EXPECT THIS SUBDUED AIR OF PESSIMISM TO PERSIST AT LEAST UNTIL SOME EVENT PRODUCES A NEW FILLIP. THERE IS NONE N SIGHT AT THE MOMENT AND THMS MAKES AT DOUBLY IMPORTANT THAT THERE SHOULD BE NO NEW NEGATIVE FACTOR INDUCED EITHER BY ANY CHINESE
ACTION,
OR BY THE FOURTH MEETING OF THE JOHNT LIAISON GROUP IN JULY. WHAT WE REALLY NEED INS SOME POSITIEVE ACHIEVEMENT AT THAT GROUP
MEETING.
YOUDE
LIMITED
HKD
FED
ERD
PROTOCOLD.
PS
PS/MR RENTON
PS | PUS
SIR W. HARDING
MR WILSON
(REPEATED AS REQUESTED)
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