PAGE FIVE XEGRØ994 RESTR
OPERATION HAS LEFT OR IS PLANNING TO LEAVE BECAUSE OF PRESENT
UNCERTAINTIES.SUCH INVESTMENT AS THERE HAS BEEN HAS COME MAINLY
FROM USA ELECTRONICS AND COMPUTER FIRMS LOOKING TO A QUICK RETURN
ON THEIR INVESTMENT.
9.DECLINE OF HKONG DOLLAR HAS OF COURSE MADE COLONY A MORE
ATTRACTIVE PLACE FOR FOREIGN INVESTMENT.COMMERCIAL AND INDUSTRIAL
PROPERTY PRICES, PARTICULARLY IN TERMS OF FOREIGN EXCHANGE, HAVE
DROPPED SHARPLY.LAND IS REPORTEDLY NOW CHEAPER HERE THAN ACROSS
BORDER IN SHENZHEN SPECIAL ECONOMIC ZONE AND ONE SIXTH PRICE OF
PRIME LAND IN SPORE.FOREIGNERS ARE QUOTED IN PRESS TO EFFECT THAT
DECLINE IN VALUE OF DOLLAR HAS RETURNED TO HKONG AN EDGE IN COSTS
THAT WAS BEING SIGNIFICANTLY ERODED.HKONG WILL LIKELY CONTINUE TO
BE A POPULAR MANUFACTURING BASE AS LONG AS FEW OTHER COUNTRIES IN
REGION CAN OFFER ITS ADVANTAGES.FINANCIAL SERVICES SECTOR IS A
SPECIAL CASE WITH ITS LACK OF FIXED ASSETS AND HKONGS CONTINUING
ATTRACTIVENESS BECAUSE OF ITS OPEN FINANCIAL MARKET,ITS PROXIMITY
TO CHINA AND ITS CROSSROADS LOCATION.
10. IN SHORT 1997 HANGS HEAVEILY OVER ECONOMY OF HKONG BUT FOR NOW
AT LEAST MONEY-LARGE AMOUNTS OF IT-IS BEING MADE BY THE SHREWD
AND THE LUCKY.
CCC/160 240630Z XEGR 0994
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