TNAG-0938-FCO40-1157-Visit-of-John-Nott--Secretary-of-State-for-Trade--to-Hong-Ko-1980 — Page 65

BRIEF 8

BRIEF FOR MINISTER FOR TRADE'S VISIT TO HONG KONG

30 AUGUST 5 SEPTEMBER 1980

THE HONG KONG ECONOMY

BACKGROUND POINTS

1.

With almost no natural resources of its own Hong Kong

depends upon its manufactured exports for survival.

2.

The world recession of 1974 was deeply felt but recovery

was rapid, based on swift export growth. GDP has grown on

average by 10% per annum and there have been signs recently of

overheating of the economy.

3.

The Government sees its major role as providing a stable

framework in which private enterprises can function efficiently.

4.

The Governor has indicated that the short-term outlook is

reasonably optimistic despite world-wide recession affecting its

major markets.