UNCLASSIFIED
FM HONG KONG
TO IMMEDIATE FCO
TELNO 3360
OF 110551Z OCTOBER 89
AND TO IMMEDIATE PEKING
UNCLASSIFIED
68
042661 MDHIAN 9265
HK B
011 15
TOP COPY Q DIST ?
MY LEGCO ADDRESS: MY FIRST IPT: EFFECT ON HK OF EVENTS IN CHINA
TEXT OF THE EXTRACT ON (QUOTE) THE EFFECT ON HONG KONG OF RECENT EVENTS IN CHINA (UNQUOTE) IS AS FOLLOWS:-
BEGINS
HONG KONG TODAY
(A) THE EFFECT OF EVENTS IN CHINA
L =
THE TRAGIC EVENTS IN CHINA HAD A TRAUMATIC EFFECT ON HONG
KONG: AND EFFECT MADE ALL THE MORE DIRECT BY THE IMPACT OF TELEVISION. MUCH HAS BEEN WRITTEN AND SAID ABOUT THOSE EVENTS:
BOTH AT THE TIME AND SINCE. I DO NOT INTEND TO ADD TO IT NOW.
THE IMPORTANT POINT FOR US IS THAT WHAT HAPPENED IN CHINA CREATED INCREASED CONCERN ABOUT THE ARRANGEMENTS FOR HONG KONG'S FUTURE. A MARK OF THIS WAS THE SIGNIFICANT INCREASE IN
APPLICATIONS FOR EMIGRATION AND THE WIDESPREAD DEMANDS FOR THE RIGHT OF ABODE IN THE UNITED KINGDOM. WE HAVE ALSO SEEN INTENSIFIED
DISCUSSION ABOUT THE RIGHT PACE OF PROGRESS TOWARDS A DIRECTLY ELECTED LEGISLATURE AND CALLS FOR THE EARLY INTRODUCTION OF A
BILL OF RIGHTS. AND THE DRAFT BASIC LAW HAS COME UNDER RENEWED
SCRUTINY.
5.
DESPITE THIS UNCERTAINTY AND WORRY ON THE POLITICAL FRONT, OUR ECONOMY SHOWED ITSELF TO BE ROBUST. ONCE AGAIN, WE HAVE BEEN REMINDED HOW MUCH OUR SURVIVAL DEPENDS ON THE RESILIENCE OF
OUR BUSINESSMEN AND OUR WORKFORCE. THE TOURIST INDUSTRY WAS AFFECTED, LARGELY BECAUSE OF THE WHOLESALE CANCELLATION OF TOURS TO CHINA. BUT OUR MANUFACTURING SECTOR WAS RELATIVELY UNSCATHED: AND ECONOMIC LINKS WITH CHINA, ESPECIALLY WITH GUANGDONG PROVICE, HAVE REMAINED STRONG. OUR NEWLY-REORGANISED FINANCIAL INSTITUTIONS WEATHERED THE CRISIS AND EMERGED WITH THEIR
REPUTATIONS ENCHANCED. OUR LINKED EXCHANGE RATE SYSTEM PROVED
ITS WORTH AT A TESTING TIME.
6.
THE OVERALL ECONOMIC EFFECT ON HONG KONG OF THE EVENTS IN
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