TNAG-1013-FCO40-1263-Hong-Kong-annual-review-for-1980-1981 — Page 11

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8.

HRH Princess Alexandra opened first section of Mass Transit Railway (paragraph 13).

9. Modernisation of Kowloon/Canton

Railway paragraph 14).

10. New Defence Cost Agreement signed.

Size of Garrison to be increased to 5 major units (paragraph 15).

// Hong Kong's relationship with the

United Kingdom on good basis. But local storm blew up over UK, university fee increases, the Nationality Bill, and CAA decision about cabotage route. UK, exports

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to K, over 550 million (paragraphs 16717).

and

12. Relations with China continue to

improve, with official visits a normal feature of life. Widespread local investment in Guangdong and China. Possibility of jointly operated nuclear power station(paragraphs 18-20).

13. Increasing breadth of official and

commercial contact is improving mutual understanding and should assist eventual discussion of Hong Kong's future. Chinese at present preoccupied with own problems (paragraph 21).

But

In spite of undoubted success and achievements of year, and of Hong Kong's luck in escaping effects of world-wide recession until recently, concern about incomes, rents and inflation.dominated end of year (paragraph 22).

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