General
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the department for Enterprise
CONFIDENTIAL AND PERSONAL
Though the
3. In general I found Hong Kong in good heart.
events of June 1989 still loom large, a common theme in my
discussions was that a substantial measure of confidence had
returned in recent months. Though the statistics show some
measure of slackening in the economy, Hong Kong remains
remarkable for its vitality and vigour. The level of
investment and of construction activity demonstrate great
commitment to the future. But I do not doubt that Hong Kong's
confidence has been bruised, not just by Tiananmen Square but
by the PRC's unhelpful approach at the current time to a range
of issues such as the new airport and Hong Kong's Air Services
Agreements.
4. Concern was expressed to me, on a number of occasions,
that British companies were insufficiently active in sectors
such as the construction industry. I intend to take this up
with appropriate UK companies, and to underline the
opportunities which undoubtedly exist. A particular point
made to me by the Governor was that, for obvious reasons,
British investors tend to associate Hong Kong with the ending
CONFIDENTIAL AND PERSONAL
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