TNAG-1635-FCO40-2251-Overseas-visits-by-Sir-Geoffrey-Howe--Secretary-of-State-for-1988 — Page 18

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SECRETARY OF STATE'S VISIT TO JAPAN

7-13 January 1988

D22719

HKB 007/9

15 DEC 1907

BRIEF NO 4: ASIA AND THE SOUTH PACIFIC

HONG KONG

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Objectives

1.

To put across the message that Hong Kong remains stable and prosperous, a good location for Japanese investment.

2.

To confirm that implementation of the Joint Declaration is

proceeding well.

3. To seek Japanese co-operation in securing durable solutions for Vietnamese refugees, and to urge Japan to take more Vietnamese

refugees from Hong Kong.

POINTS TO MAKE

1.

Confidence in Hong Kong remains good. With the exception of the stock market, which has had problems in common with all world stock markets, economic indicators are strong. 11 percent growth in GDP in 1986, at least 12 per cent expected in 1987. Even before sharp adjustments in world financial markets, some signs of a gradual slowing down. This will have beneficial effect of reducing inflationary pressures and avoiding overheating. Property market

remains strong.

2.

Energetic action taken by Hong Kong Government to review weaknesses in control of Stock and Futures Exchanges which were revealed during October downturn.

3.

Implementation of Joint Declaration

good progress continues

to be made. Co-operation over Hong Kong's future lies at heart of present close and cordial relationship between UK and PRC. Regular and wide

Both Governments ranging contacts between Ministers and officials. committed to full and faithful implementation of JD.

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