TNAG-1743-FCO40-2462-Visits-by-FCO-officials-to-Hong-Kong--including-visit-by-Lor-1988 — Page 94

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MR BOYD'S VISIT TO JAPAN 18-21 APRIL 1988

BRIEF NO 8: HONG KONG

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908 I

geon is an

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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% growth in GDP in

1986, over 13% 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 ranging contacts between Ministers and officials. Both

Governments committed to full and faithful implementation of JD.

4.

Review of representative government has involved Hong Kong

people in very full consultation on their future system of

government. Decision to introduce direct elections in 1991

generally welcomed.

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