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are expected to grow. If claims arose on commitments
of this magnitude, they could wipe out ECGD's accumulated
reserves and threaten the viability of their whole
insurance function, with major consequences for the
Exchequer.
B.
13.
Possible Changes,
While
Hong Kong's prosperity until now and, in particular,
the growth of manufacturing industry which employs the
bulk of the labour force, and the development of a
flourishing regional financial centre, have owed much to
feelings on the part both of the resident Chinese population
and of overseas business interests, that an internal
political regime conducive to the continued favourable
growth of business would prevail at least for the time taken
to recover the initial outlay on most investments.
many industrial investments can be paid off in short
periods concern has grown partly because the period of
Crown land leases in the New Territories is now less than
the customary 15-year mortgage. Between now and 1997, however,
uncertainty about the future status of the territory for
so long as no clear-cut solution emerges - or perceptions
about the implications of any agreement which may be reached
between HMG and the PRC are likely to have an increasing
impact on business sentiment and hence on new investment
and the disposition of capital already invested in Hong Kong
or generated from now onwards. While therefore there are
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9
/no
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