TNAG-1230-FCO40-1543-Visit-by-Richard-Luce--Minister-of-State-for-Foreign-and-Com-1983 — Page 128

Hong Kong Stock Market and Exchange Rate Fluctuations

Sharp fluctuations in the Hang Seng Index are more common than in Western stock exchanges. In 1973 the Index fell from 1700 to little

more than 200. Of course uncertainty over the future from time to

time affects the market but there are other factors such as the world recession, reduced growth forecasts, declining property prices, high international interest rates and the strength of the US$ dollar affect the market.

Declining confidence in Hong Kong

here, reflected in the Stock

I know there is genuine concern Markets and the exchange rate, about what the future holds in store. That is understandable and we are very conscious of this in London. But there is an underlying strength in the Hong Kong economy which is reflected in indicators such as export performance and full

order books.

British sell-out

This sort of talk is harmful and untrue. I would like to say this to the Hong Kong people: We have been trying through the talks to obtain the best possible deal for Hong Kong which will preserve its prosperity and stability. We will continue to do so. We are unwavering and united in our aim to seek a settlement which will be acceptable not only to Britain and China but also to Hong Kong.

Mr Heath's visit to China

This was a entirely private visit. He carried no official message

to or from the Chinese.

Mr Heath's exchange with EXCO

There was a meeting between Mr Heath and EXCO members. entirely private affair.

This was an

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