HONG KONG ECONOMY (defensive)
EFFECTS OF DISPUTE WITH CHINA?
GENERAL CHINESE THREATS (defensive)
CHINESE THREATS TO SET UP
SOME KIND OF SHADOW
ADMINISTRATION AND START
MAKING UNILATERAL
PREPARATIONS FOR 1997
Economic fundamentals in Hong Kong remain very strong. Probably sounder than in any other community in the world. GDP is forecast to grow by 5% in 1992, and by about the same in 1993 as the anticipated volume of re-exports increases this year (30%) and next year (26%). Trade with China continues to boom. Investment will be sustained by Government infrastructure projects.
The Hang Seng index is traditionally volatile. It currently stands about 3 times as high as it did 3 years ago, reflecting underlying strength of Hong Kong economy.
Senior Chinese official (Lu Ping) said recently (3 Jan) that China has no intention of breaching the Joint Declaration and would definitely not be setting
up a shadow' government
for Hong Kong.
He confirmed that Britain is responsible for Hong Kong's administration before 1997.