TNAG-1037-FCO40-1287-Future-of-Hong-Kong-1981 — Page 105

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DSR 11C

1.

Within these constraints IMG must examine the problem

in the medium and long-term. For the next 5 years and

beyond, the main objective must be the improvement of Hong

Kong's economic potential and prosperity and thus its value

to China, preservation of confidence among investors and the

public service, and contentment among the Hong Kong population,

against a background of the shortening Lease of the New

Territories. This will become increasingly difficult and

eventually impossible beyond some time in the second half

of this decade in default of arrangements for beyond 1997 that

are acceptable to investors and the population.

It is

therefore necessary to consider possible options for a

pre- or post-1997 settlement and the problems these will

raise.

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