CONFIDENTIAL
037447 MDHIAN 7930
MORE CONSTRUCTIVE ATTITUDE, AT LEAST ON PURELY ECONOMIC HONG KONG ISSUES SUCH AS THE AIRPORT. THAT WOULD PROVIDE A NEW BOOST FOR INVESTOR CONFIDENCE HERE, AND THE HANG SENG INDEX. BUT IF CHINESE LEADERS FAIL TO REGAIN THE ECONOMIC INITIATIVE, PESSIMISM COULD SET IN QUICKLY IN HONG KONG. CHINA'S (MEDIA INFLATED) INTERNATIONAL IMAGE AS THE NEXT ECONOMIC SUPERPOWER WOULD SUFFER. THE CUT WHICH HONG KONG TAKES ON SO MANY INTERNATIONAL BUSINESS DEALINGS WITH CHINA WOULD DIMINISH ACCORDINGLY. EVEN SO, HONG KONG HAS ALWAYS RECOVERED REMARKABLY QUICKLY FROM CHINA-INDUCED ECONOMIC SHOCKS, FROM THE FIFTIES ONWARDS. EVEN ON THE MOST GLOOMY PROJECTIONS (AND POLITICAL CALAMITIES ASIDE) NO-ONE HERE BELIEVES THAT LONGER TERM CONSEQUENCES WILL BE ANY MORE SERIOUS THIS TIME.
PATTEN
YYYY
ΜΑΙΝ
25
DISTRIBUTION
36
.HK FINANCIAL
.(DIALOGUE)
HKD
PUSD//HD
ECONOMIC ADVISERS//HD
ERD//HD
RAD//MR WYE
PS
PS/MR GOODLAD
PS/PUS
SIR J COLES
MR HUM
FED//HD
ADDITIONAL
11
CAOFF//SIR R BRAITHWAITE
CAOFF//MS DL CORNER
CAOFF //MR SIBSON
CAOFF//MISS NEVILLE JONES
BANK ENG// MR A CROCKETT
BANK ENG//MR C ELSTON
BANK ENG//MR LATTER
HMT//PS/CHANCELLOR
HMT//MR MORTIMER
HMT//MR S WOOD
HMT//MS H ROBERTS
NNNN
3
PAGE CONFIDENTIAL