TNAG-1013-FCO40-1263-Hong-Kong-annual-review-for-1980-1981 — Page 18

of

CONFIDENTIAL

- 7-

offer no prospect for early relief. Hong Kong may have been lucky largely to have escaped the effects of world-wide recession so far, and in the last half

of 1980 was only lightly touched by it. But after years of steady growth and rising affluence, and coming on top of the disturbing influx of immigrants most of the population feel the new climate threatening Cap (and chill. This government will need to tread warily.

23.

I am sending a copy of this despatch to HMA at Peking and Tokyo.

Jam Si

Hirve the

My Lord

Yours farthfully) have bandits a genet,

Your Lordship's

obedier

servant

Mr. Nihan

CM, MacLehose.

CONFIDENTIAL

1320