TNAG-1464-FCO40-1991-Visits-by-Chinese-officials-to-the-UK--including-visit-by-Hu-1986 — Page 124

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4. IT IS THMS KIND OF FEELING WHICH DIES BEHIND, THE RECENT REVIEW OF HONG KONG '86'' WITH ITS WHWND FRONG PAGE TITLE **JITTERY CITY' IN THE FAR EASTERN ECONOMIC REVIEW (FINE HOPES FADE TO FEARS''): AND BEHIND THE #INTERPRETATION IN THE FINANCIRAL PRESS OF INCREASING SOFTNESS IN THE MMDDLE LEVEL RESIDENTIAL PROPERTY MARKET AS DEFINITE SIGNS THAT THOSE PEOPLE WHOSE BELIEF IN HONG KONG'S FUTURE IS HINTEGRAL TO HTS FUTURE WELL-BEING ARE STARTING TO HAVE

SECOND THOUGHTS''.

5. HN ALL THE HONG KONG GOVERNMENT SAYS AND DOES WE SEEK TO COUNTER THESE TRENDS. BUT EXPECT THIS SUBDUED AIR OF PESSIMISM TO PERSIST AT LEAST UNTIL SOME EVENT PRODUCES A NEW FILLIP. THERE IS NONE M SIGHT AT THE MOMENT AND THIS MAKES HT DOUBLY IMPORTANT THAT THERE SHOULD BE NO NEW NEGATIVE FACTOR INDUCED EITHER BY ANY CHINESE ACTION, OR BY THE FOURTH MEETING OF THE JOHNT LIAISON GROUP IN JULY. WHAT WE REALLY NEED IS SOME POSITIVE ACHIEVEMENT AT THAT GROUP

MEETING.

YOUDE

LIMITED

HKD

FED

ERD

PROTOCOLD.

PS

PS/MR RENTON

PS PUS

SIR W. HARDING MR WILSON

(REPEATED AS REQUESTED)

~2-

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