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SECRETARY OF STATE'S LUNCH WITH BACK-BENCHERS:
20 FEBRUARY 1992
Points to make
HONG KONG
Hong Kong picture brighter than for some time. Agreement on airport and Prime Minister's visit boosted confidence. 4% economic growth in 1991: 1992 likely to be even better. Markets booming. Inflation 10%, but lower than before and a normal part of economic adjustment to new opportunities in South China. Influx of Vietnamese migrants halted, we hope.
Political scene livelier since LegCo elections in September. A pity none of the directly-elected "liberals" was prepared to serve on ExCo under principle of collective responsibility, but hope they may reconsider later. Meanwhile we hope to see administration developing proper dialogue with them the "liberals" sometimes use extreme language, but we do not want to force them into perpetual opposition: need to encourage constructive attitudes among all political groupings and to persuade the Chinese to improve contacts with all.
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LegCo debates now longer: Administration has to fight its corner more vigorously. But business is going through drift. (Eg labour importation scheme - not popular with the public, but need to ease tight labour market if Hong Kong's economy to continue to grow).
Change of Governor has caused predictable grumbling in Hong Kong - often from those who previously grumbled about David Wilson. He has done a good job, but five years is a
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POINTS TO
MAKE:
HONG KONG