GRS 500
CONFIDENTIAL
FM HONG KONG
TO DESKBY 09080OZ FCO
TELNO 1767
OF 090225Z JUNE 86
INFO IMMEDIATE PEKING
CONFIDENTIAL
237
TOP COPY
HRK 02612
RECEIVED IN REGISTRY 12 JUN 1986
„DESK OFFICET. INDEX
WISINT OF HU YAOBANG: HONG KONG SENTIMENT.
PA
AgB 1216
1. MONUSTERS MAY WISH TO HAVE AN UP-TO-DATE ESTIMATE OF FEELING #N
HONG KONG AT THE PRESENT TIME AS BACKGROUND TO ANY DISCUSSION WHICH
MAY OCCUR ON THIS POINT WITH HU YAOBANG HIMSELF, ZHOU NAN OR OTHERS.
2. THERE ARE TWO CLEAR AND SEPARATE DIMENSIONS. OVERSEAS INVESTMENT INTEREST REMAINS STRONG AND WE CAN POINT TO THREE OR FOUR EXAMPLES OF
THIS, SUCH AS THE JAPANESE CONSORTIUM UNDERTAKING THE SECOND CROSS-HARBOUR TUNNEL: THE EXPANSION OF THE CONTAINER PORT, THE
EASTERN CORRIDOR UNDERTAKING: LIGHT RAIL TRANSPORT IN THE TUEN MUN
CORRIMDOR: CONTINUING AMERICAN MANUFACTURING INVESTMENT WITH A NEW
"INTEREST HIN THERS BY JAPANESE COMPANIES SEEKING REFUGE FROM THE
HIGHER DOMESTIC COSTS OCCASIONED BY THE STRONGER YEN.
3. INTERNALLY, THE PICTURE IS DIFFERENT. THERE IS AN AIR OF PESSIMISM
WHICH IS NOW REGULARLY COMMENTED ON BY VISITORS TO HONG KONG WHO CALL TO SEE ME. THIS IS NOT ENGENDERED BY ANY PARTICULAR CAUSE: AND
HT HS PARTLY SELF-INDUCED BY PRESS COMMENT ON NIT. IT IS LARGELY THE
CONSEQUENCE OF UNCERTAINTIES ABOUT 1997 BUT FACTORS CONTRIBUTING TO
HIT ARE ALSO WORRIES ABOUT PROTECTIONISM AND UNCERTAIN MARKETS #N
THE UNITED STATES: ABOUT RETRENCHMENT IN THE CHINESE ECONOMY LEADING
TO A SUBSTANTIAL REDUCTION OF EXPORTS AND RE-EXPORTS THERE: ABOUT
THE WAY IN WHICH THE DISCUSSIONS IN THE SPECIAL GROUP OF THE BASINC LAW DRAFTHING COMMITTEE ON THE FUTURE POLITICAL STRUCTURE ARE BEING
HANDLED: ABOUT LACK OF DOMESTIC REINVESTMENT N #NDUSTRY, ETC. ETC.
EVENTS IN CHINA ARE ALSO MAKING SOME IMPACT FOR EXAMPLE STORES
ABOUT DENG'S SUPPOSED OPPONENTS SUCH AS CHEN YUN HAVING AN
#INCREASING INFLUENCE: ABOUT CORRUPTION: ABOUT LAW AND ORDER
AND IN PARTICULAR THE RECENT EXECUTION IN CANTON OF A FORMER HONG
KONG RESIDENT FOR A THEFT OFFENCE WHICH WOULD PROBABLY HAVE GOT
HIM 5 YEARS HERE (NOT THE ONLY EXAMPLE OF A LIBERAL USE OF THE
DEATH PENALTY) ETC.
3.
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