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of the Chinese and Hong Kong authorities and I have no
doubt that this movement too will be controlled by joint
action. Meanwhile it remains a point of very major concern.
As an economic community we are entirely dependent
on external forces, and in particular on the state of our
markets abroad. Shorter order books have brought increasing
unemployment, though it is still low by international standards.
But in the short term we see no prospect of recession unless
induced by some external dramatic event, and in the medium
term we believe our prospects to be extremely good. Indeed
the tone of Hong Kong at the moment is characterised by a
high stock exchange and intense land development, and the
latter represents the confident mood of much of the community.
I think there are in particular three reasons
for this confidence. Firstly the five million people of
this small territory can boast a track record of energy,
inventiveness and adaptability second to none in the world.
They have always lived in a time of change and have shown
their ability to meet this challenge in the past and they
/are confident .....
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