RESTRICTED
FM BTC HONG KONG
TO PRIORITY FCO
TELNO 241
OF 10043OZ SEPTEMBER 93
RESTRICTED
PA BTC
37
037546
MDLIAN 6333
HKA 120/1
OPY
16 SEP 1993
Whikey Mh Bates
INFO PRIORITY CANBERRA
INFO ROUTINE DTI, PEKING, HONG KONG, UKREP JLG HONG KONG,
INFO ROUTINE ATTC TAIPEI, TOKYO, SEOUL, SINGAPORE, KUALA LUMPUR INFO ROUTINE JAKARTA, BANGKOK, MANILA, WASHINGTON, WELLINGTON, INFO ROUTINE BONN, EC POSTS
PART ONE OF TWO PARTS:
DTI:
HONG KONG:
CANBERRA:
FOR PEP AND XAAA2D.
STRICTLY PERSONAL FOR POLITICAL ADVISER.
FOR PS MRS BOTTOMLEY.
HONG KONG BUSINESS PROSPECTS: VIEW FROM THE BRITISH TRADE COMMISSION.
SUMMARY.
1.
VALEDICTORY THOUGHTS ON RELINQUISHING THE BTC. HONG KONG'S DISTINCTION FROM CHINA PRINCIPALLY LIES IN THE RULE OF LAW. BUSINESS COMMUNITY, WITH FEW EXCEPTIONS, RELUCTANT TO RECOGNISE THIS. IF THE CONSTITUTIONAL TALKS BREAK DOWN, BUSINESSMEN WILL AGAIN SQUEAL. UK FIRMS COULD SUFFER, E.G. OVER THE CANTON METRO. IF THE CHINESE LIFT THEIR VETO ON AIRPORT AND PORT PROJECTS, LOCAL SENTIMENT WILL BOUNCE BACK. HONG KONG'S ECONOMY A MIXED PICTURE AT PRESENT, BUT MAJOR PROJECTS IN SEVERAL INFRASTRUCTURE SECTORS INDICATE OVERALL CONFIDENCE. HONG KONG AN OUTSTANDING EXPORT PROSPECT, TOGETHER WITH CHINA TRADE VIA HONG KONG.
DETAIL.
2.
I WAS ASKED BY THE DEPARTMENT TO HOLD THE FORT AT THE BRITISH TRADE COMMISSION FOR THREE MONTHS FOLLOWING THE PREMATURE DEPARTURE OF MR.DAY AND PENDING THE ARRIVAL OF MR.CORNISH. THE THREE MONTHS ARE UP. TIME FOR A MOMENT OF REFLECTION ON THE BUSINESS SCENE, PREFACED BY A COMMENT ON THE CHINA/HONG KONG INTER-RELATIONSHIP.
ROLE OF THE RULE OF LAW.
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