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062031
MDHIAN 154
HAD BEEN VERY NEGATIVE. THE GOVERNOR SAID THAT MORE VIGOROUS COUNSELLING WAS ESSENTIAL TO GET THE STARK MESSAGE ABOUT REPATRIATION HOME. ONCE REPATRIATION ARRANGEMENTS WERE IN PLACE THIS WOULD, IN OUR JUDGEMENT, ACT AS AN EFFECTIVE DETERRENT TO FURTHER DEPARTURES. DR SOLOMON SAID THAT THE AMERICANS WERE KEEN TO HELP IF THEY COULD. WE SHOULD STAY IN TOUCH IN AN EFFORT TO KEEP THE TEMPERATURE DOWN. THE GOVERNOR SAID THAT WE RECOGNISED AMERICAN DIFFICULTIES. IT WAS PARTLY FOR THIS REASON THAT WE HAD GONE SLOW ON EFFORTS TO PUT NEW ARRANGEMENTS IN PLACE SINCE AUGUST IN ORDER TO PROVIDE TIME TO EXPLAIN OUR DILEMMA TO THE AMERICANS.
CONFIDENCE
3. DR. SOLOMON ASKED WHAT THE AMERICANS COULD TO TO HELP MAINTAIN CONIDENCE IN HONG KONG. THE GOVERNOR SAID THAT
MAINTAINING AMERICAN INVESTMENT IN HONG KONG WAS THE MAIN CONTRIBUTION THAT THE AMERICANS COULD MAKE. THE PORT AND AIRPORT DEVELOPMENT WOULD OPEN UP NEW OPPORTUNITIES FOR AMERICAN INVESTMENT AND INVOLVEMENT IN DEVELOPING HONG KONG IN ANSWER TO DR. SOLOMON'S QUESTION, HE CONFIRMED THAT OUR ADVISORS SAW NO REAL DIFFICULTY WITH FINANCING THESE DEVELOPMENTS EVEN IN THE POST 4 JUNE ENVIRONMENT. WE HAD YET TO DISCUSS DETAILS (EG ON THE USE OF THE LAND FUND) WITH THE CHINESE. WE ALREADY HAD A NUMBER OF MAJOR INFRASTRUCTURE PROJECTS IN TRANSPORT AND THE CONTAINER PORT WITH HEAVY PRIVATE SECTOR INVESTMENT AND PAY-BACK PERIODS LASTING WELL BEYOND 1997. THE REDEVELOPMENT OF ΚΑΙ TAK WOULD OFFER FURTHER OPPORTUNITIES TO REGAIN SOME OF OUR INVESTMENT IN THE NEW AIRPORT AND TO GEER UP THE
URBAN RE DEVELOPMENT OF LOWLOON.
YANG YANG
4. THE GOVERNOR THANKED DR. SOLOMON FOR AMERICAN ASSISTANCE IN RESOLVING THE YANG CASE. WE HAVE GONE FOR THE LEAST BAD ALTERNATIVE ALTHOUGH WE HAD SUFFERED SOME CHINESE OVERREACTION AS A RESULT. THERE WERE NOW TENTATIVE SIGNS THAT THE CHINESE MIGHT BE THINKING OF SCALING DOWN THEIR CURRENT RETALIATION, BUT THE ACTION THEY HAD TAKEN SO FAR HAD CREATED A BAD EFFECT IN HONG
KONG.
APEF
5. DR. SOLOMON SAID THAT THE AMERICANS SUPPORTED HONG KONG INVOLVEMENT IN THE APEF PROCESS HONG KONG AT AN EARLY STAGE. IN VIEW OF ASEAN CAUTION, THEY NOW HOPE FOR HONG KONG'S INCLUSION IN A LATER APEF ROUND. THE INDONESIANS AND MALAYSIANS WERE THE MAIN ASEAN
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