TNAG-1413-FCO40-1889-Future-of-Hong-Kong-annual-report-to-Parliament-on-Hong-Kong-1985 — Page 32

**

3*R་

CONFIDENTIAL

50

Region of

restore the

years

after Hong

Kong becomes a Special Administrative

the People's Republic of China in 1997, did much to

confidence of the people of Hong Kong, who for the

previous two years had felt uncertainty and anxiety about what the

future held in store. Following the announcement of the agreement

the future looked much more assured.

54.

It remains the policy of Her Majesty's Government to maintain

confidence in Hong Kong and to promote its stability and prosperity.

So far as the development of representative government is concerned,

following the recent changes in the

composition of the Legislative

Council, the coming year will be a period of

of consolidation of the

which

have

ou t

rather

reforms

already been carried

than of new initiatives. On the economic front, the outlook is

satisfactory, notwithstanding the possibility that the growth rate of demand for domestic exports in Hong Kong's main export markets

will be low; employment is expected to remain stable and the rate of

inflation low; the recovery of the property market is likely to

continue; and the prospects for

re turn a

a

to balanced budget in

1986-87

The Sino-British Joint Liaison Group and Land

Commission have got off to good starts.

good. are

to

55. Her Majesty's Government remain committed

the territory of

Hong Kong and

its people. They will continue to

their fulfil

for Hong Kong's sound responsibilities

administration and to look

to

after Hong Kong's interests internationally. They will work to

implementation of the Sino-British

ensure

the

smooth

Declaration, and

stability.

to

economic preserve

and prosperity

Joint

social

18

<<

CONFIDEN TIAL