TNAG-1238-FCO40-1551-Future-of-Hong-Kong-1983 — Page 42

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errors creeping in the Tuen Mun LRT is said to be "under construction"!) But this factual information is interspersed with paragraphs of analysis and comment; and on almost every page there is an inset quotation from a leading businessman, or a framed paragraph of comment, unattributed and mostly not taken from the main text. These paragraphs are often provocatively-worded, and have something of the flavour of a Sunday School Bible text.

4.

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Noteworthy Points

Extracts from the Report are presented below

under 4 headings: The present situation; Chinese characteristics; the mutual importance of Hong Kong and China; and the future.

The Present Situation

(a)

(b)

(c)

(a)

is particular- ly dependent on foreign

currency

(e)

All in all, it is not an exaggeration to state that Hong Kong - despite its high population density and severe growth problems is one of the safest places in Asia to live in or visit, both from health and security points of view. (text page 12)

Hong Kong's Economic Laissez-Faire policy has been instrumental in attracting a level of entrepreneurship that provided remarkable growth during the decade of the 1970s and through 1981. (text, page 17)

In retrospect, the problems of 1982 seem to be largely over, and economic recovery imminent. Strengths Iremain, and will continue to provide a basis for future

growth. Confidence has returned, and is increasing rapidly. Under these circumstances it would be a mistake to "sell Hong Kong short. It is well positioni, in all respects, to benefit in full measure from the world and regional recovery that is foreseen for the remainder of this decade - and the longer range future allowing for the temporary adjustments that are an inevitable feature of the world economy. (text, page 18)

A

In the absence of a more satisfactory system of monetary control (than the Exchange Fund), Hong Kong's currency/inflows which can be curtailed rapidly whenever there is any perceived reason to lose confidence in the local investment environment. Hong Kong dollar is especially vulnerable, therefore, adverse shifts in sentiments such as occurred in the 1. quarter of 1982. (text, page 21)

The

The industrial western nations have not realized the full potential that exists in the Asia-Pacific countries for their own industries, and hence for their national well-being. The development of more mature concepts of real self-interest in all countries is an urgent necessity not only for the Asia-Pacific group but throughout the inudstrialized ami developing world. (text, page 36)

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