TNAG-0069-FCO40-105-Disturbances-in-Hong-Kong-propaganda-1967 — Page 14

2.

CONFIDENTIAL

(3)

Evidence of Decline of Overseas confidence in Hong Kong

Buyers

(a)

(b)

(c)

(a)

As an initial assessment the buyers for whom delivery periods are short, and those who would need time to look elsewhore and are therefore committed, have not placed fewer orders: Some buyers whose orders require longer to deliver and are able to look clsewhere are known to be hesitant, and in some instances not placing orders. Some buyers for mail order companies or chain stores are taking steps to reduce do- pendence on Hong Kong products. In the long

term there is a threat to the hitherto sustained growth of exports.

Investors

Although investment which has already been committed has continued, these investments have been predominantly in service industries, rather than in manufacturing. There has been very little now investment by local or overseas capital. Re-investment also appears to have slowed down.

Tourists

There has boon a slow-down in the growth of the tourist industry, both in the number of arrivals investmont in now facilities and the actual business transacted. Group tour operators are already apprehensive about sustaining or increas- ing their operations. Some tourist carriers are cutting down on their visits to Hong Kong, either in duration or number of visits.

General public opinion overscas has been more critical of social conditions in Hong Kong by making comparisons with those in more advanced countries. Part of this critical comment has been malicious or part of ill-doduced assessments of the causes of the disturbances, some has been an inability to appreciate why British rule in Hong Kong is not able to advance more quickly to the standards by which people in Britain live.

CONFIDENTIAL

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