TNAG-1942-FCO40-2768-Internal-economic-situation-in-Hong-Kong-1989 — Page 23

CONFIDENTIAL

FM FCO

TO PRIORITY HONG KONG

TELNO 2049

OF 1118OOZ OCTOBER 89

WALTER SULKE

CONFIDENTIAL

HKC090/2 R

16

045777

TOP COPY Q DIST LOAN 3314

:

D

1. MR SULKE HAS WRITTEN TO MR MAUDE ENCLOSING THE TEXT OF A

SPEECH HE DELIVERED RECENTLY TO THE HONG KONG EXPORTERS ASSOCIATION. WE DO NOT PROPOSE THAT MR MAUDE SHOULD REPLY IN ANY DETAIL. BUT WE ARE INCLINED TO RECOMMEND THAT HE SHOULD TAKE UP ONE POINT IN MR SULKE'S SPEECH, IN WHICH HE CRITICISES THE HONG

KONG GOVERNMENT. THE RELEVANT PASSAGE IS AS FOLLOWS

QUOTE WHAT I HAVE SAID ABOUT THE NEED FOR US TO GET LEANER AND HUNGRIER GOES DOUBLE FOR OUR VERY EXPENSIVE, OVER EXPANDED, AND IN MANY INSTANCES, INEFFICIENT CIVIL SERVICE AND THE LACK OF GOVERNMENT ACTION TO CONTROL AND REDUCE OUR INFLATION UNQUOTE.

2. GRATEFUL FOR YOUR COMMENTS.

MAJOR

YYYY

ΜΑΙΝ

15

LIMITED

HKD

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DISTRIBUTION

15

MR MCLAREN

1

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CONFIDENTIAL