CP1AQS (2)
CONFIDENTIAL
MR WADDINGTON'S VISIT TO HONG KONG: 21-27 SEPTEMBER
Background
III.
HONG KONG ECONOMY: CONFIDENCE
1.
Economic indicators continue to show that economy is
performing well and that
that confidence in the future is strong.
The
Hang Seng Index (stock market) remains buoyant and earlier this
month reached its highest ever level. Recent land sales and share
flotations have been very successful.
2.
1986/87:
Hong Kong's Financial Secretary predicted in his budget for
(a)
a growth rate in GDP of approx 4.5%
(b)
a growth in total exports of 6%
(c)
an inflation rate of only 5%.
3.
Hong
Kong
generally
However, below the surface confidence in the future among
people remains fragile. Those able to do SO have made arrangements to emigrate quickly around 1997 if People are watching Chinese actions carefully for a sign
of future Chinese intentions towards Hong Kong post-1997 -
eg in the
drafting of the Basic Law (see II) and in China's response to the
current Daya Bay controversy (see IV).
necessary.
CONFIDENTIAL