TNAG-1821-FCO40-2584-Emigration-from-Hong-Kong-1988 — Page 190

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

HellD 341/5

Hong Kong's Future.

Important to Asia and the West

Garner's Speech

at

Chatham Hame

may well be

"jittery

and the "sunset for

Others have

Readers of the international press

puzzled by what they have been reading recently about Hong

Kong. Some newspaper commentaries have spoken of a

city"; a "crisis of confidence";

capitalism" in a "dying colonial possession".

referred to a "massive brain drain" and a "drain of capital". Yet in this same period perceptive readers will have seen from the financial press that our economy is booming, and that exports, investment and stock market indices are all buoyant. Visitors have been struck by a surge in construction activity

comparable with that currently underway in Manhattan.

Exports

at the end of July were up by 32% on the year before, re-exports were up by 52% and the stock market was at an all

time high. What is really going on?

Hong Kong's position is unique. The arrangements for

its future are also unique. This uniqueness needs to be understood if anyone is to have a clear picture of what is

happening in the territory now and in the future.

In 1997, Hong Kong will become a Special

Administrative Region (SAR) of the People's Republic of China.

It will remain capitalist. It will administer itself, except in the areas of foreign policy and defence, which will be

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