TNAG-1256-FCO40-1589-Third-countries-and-the-future-of-Hong-Kong-1983 — Page 181

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GOVERNMENT'S THINKING. THE PEOPLE OF HONG KONG ARE WELL ABLE TO

JUDGE FOR THEMSELVES WHAT FUTURE ARRANGEMENT WOULD AND WOULD NOT

INSPIRE CONFIDENCE.

7. ON WHY HMG ARE NOT SAYING MORE ABOUT THEIR POSITION IN TALKS

YOU SHOULD SAY THAT BY AGREEMENT THE LATEST OF THE TALKS ARE

CONFIDENTIAL. IN OUR VIEW STATEMENTS MADE OUTSIDE THE TALKS ARE

NOT HELPFUL. THE PLACE FOR AN EXCHANGE OF VIEWS IS THE

CONFERENCE TABLE.

8. ON RECENT FLUCTUATIONS IN HONG KONG STOCK MARKET AND DOLLAR

EXCHANGE RATES YOU MAY SAY THAT ALTHOUGH UNCERTAINTY ABOUT FUTURE

UNDOUBTEDLY AFFECTS CONFIDENCE. THERE ARE

OTHER FACTORS, EG WORLD RECESSION, STRENGTH WORLDWIDE OF US

DOLLAR AND HIGH INTERNATIONAL INTEREST RATES. GIVEN UNDERLYING

STRENGTH OF HONG KONG'S ECONOMY, THE HONG KONG DOLLAR IS MUCH

UNDERVALUED.

HOWE

FUTURE OF HONG KONG

TAEMIND

COPIES TO

MR COLLINS, WED. SIR IAN SINCLAIR MR BURROWS

/FED

MR ROBERTS

D/PLANNING STAFF

ED/PUSD

MR MÄRTIN

PS

MR FLOWER

PS/LADY YOUNG

PS/MR LUCE

PS/PUS

SIR J BULLARD

MR GEFFARD MR DONALD MR WRIGHT

MR COLES

SIR A PARSONS

LEGAL ADVISER LEGAL ADVISER

NEWS D

ASSESSMENTS STAFF

CABINET OFFICE

PUSD

NO 10 DOWNING STREET

NO 10 DOWNING STREET

MR WALKER RESEARCH D OAB 2/82

MR GOODALL, CABINET OFFICE

CONFIDENTIAL