TNAG-1255-FCO40-1588-Third-countries-and-the-future-of-Hong-Kong-1983 — Page 218

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prospects for progress.

Hong Kong

15.

The Americans are very concerned about the future

of Hong Kong where they have extensive interests. A

They are kept in the pictive at a high

brief on the subject is being given very limited

at the

distribution.

level, mainly State Dept,

World Economic Scene

16. The Prime Minister may wish to emphasise the

requirement for sustained economic recovery, grounded in

new investment. US interest rate levels are the major

determinant of levels elsewhere. The mix of US

economic policies seems likely to have come under attack

at the IMF meetings taking place immediately before the

Prime Minister's arrival in Washington, as may the

problems created by Congressional intransigence over

legislation to authorise increases in IMF resources.

Action by the Americans to implement the Williamsburg

Declaration is even more important than action by other

countries. In the context of the Williamsburg commitment

to roll back protectionism, the Prime Minister will wish

to emphasize the need to prevent any further

deterioration in relations between the United States and

the European Community. Mrs Thatcher could remind the

President that his recent measures affecting steel

imports were unhelpful and indicate the need for an

effort on both sides to resolve current problems over

agriculture.

17. The President will be interested in British plans

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