TNAG-1013-FCO40-1263-Hong-Kong-annual-review-for-1980-1981 — Page 31

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 5 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 and chill. This government will need to tread warily.

23.

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

I have the honour to be,

My Lord,

Your Lordship's most obedient servant

Mr N. Sha

C M MacLehose

CONFIDENTIAL