TNAG-1646-FCO40-2293-Chinese-investment-in-Hong-Kong-1987 — Page 60

FCO40 Hong Kong Department Records 聯邦事務部香港部檔案 All

minute/letter/teleletter/despatch/note

LSR 11 (Revised)

DRAFT:

FROMenton

SECURITY CLASSIFICATION

Top Secret

Secret

Confidential

Restricted

Unclassified

PRIVACY MARKING

........In Confidence

CAVEAT.

DEPARTMENT:

TEL. NO:

TYPE: Draft/Final 1+

Reference02/1

[HK2AON]

TOP B Hardcastle Esq

Hardcastle & Co Ltd

3 Gracechurch St

LONDON

EC3V OAB

SUBJECT:

Your Reference

HICAAT.

Copies to:

For gove

me you

not commenting

sooner

16

December.

I was

I have

Thank you for your letter of

interested to read your record of comments made to you by

the Chinese during your recent visit to Peking.

to say however that I do find some of them a little

puzzling.

First,

it is not really accurate to say that

the

Enclosures-flag(s).

"negotiation

markets"

of the Hong Kong agreement led to

considerable unhappiness in Hong Kong which in turn led

to the flight of confidence and the collapse of the local

While there was inevitably a degree of

uncertainty and concern in Hong Kong at various stages

during the two year long Hong Kong negotiations, Hong

Kong's economic position has steadily advanced ever since

the draft agreement was initialled in September 1984. In

July 1984 the Hang Seng Index dipped below the 800 mark

for several successive days.

It has risen fairly

then until it breached the 2600

the 2600 barrier

it is true

steadily since then

earlier this month. The property market has it

never fully recovered to the very high levels it reached

Page 60Page 61

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