ARABY
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VISIT TO HONG KONG BY LORD GLENARTHUR, 16-19 SEPTEMBER
BRIEF NO 16: PRESS CONFERENCE
(xiii) Trade/Economy
Hong Kong Economy
1.
Economy performing very well.
Understand estimate of Hong Kong
growth rate for 1987 is about 8%, impressive by any standards. Economic indicators show confidence in future is strong.
UK/Hong Kong Trade
2.
British companies interested, active and successful in Hong Kong market. Hong Kong now UK's second largest market in Far East and
17th world wide.
(Defensive)
(UK selling Hong Kong short for sake of increased trade with China?) 3. No question of this. Very important element of our relationship with China that we be seen to discharge fully our responsibility for Hong Kong. Our trade with Hong Kong far greater than our trade with China. Whoever thinks we are putting trade with China before Hong Kong's interests would be a poor businessman. In any case, seems to me that development of a broader and deeper economic relationship between Britain and China, and the increase in contact and understanding which will go with it, can only be good for Hong Kong. Will consolidate China's open-door policy, and enhance Hong Kong's importance as a uniquely convenient place from which business can be done in China.
Trade Protectionism
4.
Strongly share Hong Kong's concern about growth of protectionism in US or elsewhere. Monitoring closely. Regard Hong Kong's completely open market as example to rest of world of free trade at
work.
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