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through Hong Kong. Few have forgotten their roots. Because
of this, I know that you in San Francisco will understand
particularly well some of the emotions and problems that
have confronted us in Hong Kong this year.
What happened in Peking in June, brought into
every home by round-the-clock television reporting, shook
the confidence of the people of Hong Kong in their future.
In the weeks after June 4, the mood was despondent. I do
not propose to dwell on this today. Hong Kong is already
demonstrating its legendary resilience in the face of
adversity. But the memories are there, a sombre backcloth
to more recent and more positive developments.
Let me review first the immediate economic impact
on Hong Kong. The Hang Seng Index has always been our most
sensitive barometer. So no surprise that equities shed a
third of their value in May and June. Property values
dropped an estimated 15% to 20%. Consumer spending fell in
June when no one was in the mood for spending. Many foreign
tourists cancelled China tours others, quite wrongly,
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thought that Hong Kong too was in turmoil. Both hotel
occupancy rates and retailing suffered as a result.
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