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re-impose some previously lifted controls on prices so as to provide some immediate relief to the inflation problem.
49.
From Hong Kong's point of view, any major backtracking would be of great concern. In view of the very special political and economic relationship between Hong Kong and China, any significant change in China's economic policy is likely to be detrimental to business confidence in Hong Kong. It would be in Hong Kong's
interests therefore for China to move slowly but steadily
in tackling its inflation problem. Any bold attempts which attempt to solve the problem once and for all but with little consideration of the impact on public
confidence would not be welcome.
Economic Analysis Division Economic Services Branch Government Secretariat 10 October 1988
G.F. 326
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