TNAG-0850-FCO40-1060-Future-of-Hong-Kong-New-Territories-leases-1979 — Page 178

461

Николов

25 JUL 1979

164

00 PEKING DESKBY 25010OZ

GR 200

CONFIDENTIAL

DESKBY 250100Z

FM FCO 241610Z JULY 1979

TO IMMEDIATE PEKING

TELEGRAM NUMBER 421 OF 24 JULY

ulo Plz &

ههه

FOLLOWING TELEGRAM NOW REPEATED TO YOU AT REQUEST OF DEPARTMENT WAS SENT TO HONG KONG TELEGRAM NUMBER 575 OF 23 JULY.

FOR GOVERNOR FROM MCLAREN

PARLIAMENTARY QUESTION.

1. MR ROBERT PARRY HAS PUT DOWN THE FOLLOWING QUESTION FOR ANSWER

ON 26 JULY:

QUOTE....WHETHER HE CONSIDERS THAT THE INABILITY OF THE HONG

KONG GOVERNMENT TO ISSUE POST-1997 LEASES IN THE NEW TERRITORIES IS

CAUSING A CRISIS IN INVESTORS' CONFIDENCE: AND IF HMG HAS ANY PLANS

TO REMEDY THIS SITUATION. UNQUOTE.

2. TO THE BEST OF MY KNOWLEDGE, THIS IS THE FIRST DIRECT QUESTION WE HAVE HAD ON THIS SUBJECT (I DO NOT KNOW WHO INSPIRED IT). SUBJECT

TO YOU VIEWS, WE THINK IT IS BEST SIDESTEPPED AND PROPOSE TO RECOMMEND A REPLY ON THE FOLLOWING LINES :-

QUOTE: INVESTMENT DECISIONS ARE INFLUENCED BY MANY FACTORS. BUT

IT IS CLEAR THAT INVESTORS GENERALLY TAKE A VERY POSITIVE VIEW

OF THE PROSPECTS IN HONG KONG. UNQUOTE.

3. I SHOULD BE GRATEFUL FOR YOU COMMENTS NOT LATER THAN 083OZ ON 25

JULY.

CARRINGTON

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