TNAG-1053-FCO40-1303-China-and-Hong-Kong-Working-Group-1981 — Page 35

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or deed, and they have intimated that the continuation of

Dobot kuns their

ideas. They reation

лату

Hong Kong's economic system would not be affected by whatever

Optains include allowing sq. & conture begiet 1997 solution was reached in or around 1997 The Chinese are aware

while maintain of the need to maintain business confidence, but apparently

Mat

feel that the assurances already made should suffice.

Political stability and economic development in China are

immediate problems: they see no urgency in the Hong Kong

i

question. Whether will allow profit status quo

Economic Prospects and HMG's Interests

4. Hong Kong's economy is booming and, confidence permitting,

prospects are good. The latest economic report of the Hong

Kong Bank forecast a gathering momentum in the growth of

exports this year and what it called "buoyant long-term

investment". The UK's stake in Hong Kong's economic buoyancy

is fairly substantial, particularly in export credits.

7% of ECGD liabilities (£1,253 million) are in Hong Kong,

making in ECGD's largest market. Credits for Castle Peak 'B'

could almost double this figure and ECGD's commitments on the

project, if agreed, will extend beyond 1997.]

Future. Not

Not a time for initiatives. Movines need

Some

encourage any practical moves which might encourage

confidence

on

сп

encermany

нка clear poss

I sq conturing beyond 1997

Garmurio Annual

Reviews

watch for ways

I

Chinese investment, Also wakit es. Chinese to make armances frere pusese

Vital for no not & noch confidente & by speculati

Jutine. This applies to discuss with

businessmen.

CONFIDENTIAL