TNAG-1942-FCO40-2768-Internal-economic-situation-in-Hong-Kong-1989 — Page 46

CONFIDENTIAL

013632 MDHIAN 9359

FINANCE. SOME RELUCTANCE IS ALSO REPORTED ON THE PART OF SOME HONG KONG MANUFACTURERS AND TRANSPORT AGENTS TO MOVE GOODS IN AND OUT

OF CHINA. AN INCREASED PREMIUM IS REPORTEDLY HAVING TO BE PAID TO THE DRIVERS OF TRUCKS AND TO CHINESE BORDER OFFICIALS.

9. FOR THE MEDIUM TERM, CONCERN HAS BEEN EXPRESSED, ESPECIALLY BY US COMPANIES OVER THE NEED TO FIND ALTERNATIVE SOURCES OF SUPPLY AND OVER A POSSIBLE CONSUMER BACKLASH AGAINST CHINESE

GOODS (ESPECIALLY TOYS ?).

FORD

YYYY FCO PASS SAVING TO PEKING

YYYY

DISTRIBUTION

52

ΜΑΙΝ

49

.HONG KONG AGREEMENT

.(RESTRICTED)

LIMITED

PUSD

HKD

HD/FED

RESEARCH (FE)

ADDITIONAL

3

PS/LORD GLENARTHUR

PS/MR EGGAR

MR GILLMORE

MR MCLAREN

MR EDWARDS LEGAL ADV

MR WHOMERSLEY LEGAL ADV

MR FIFOOT HKD

NNNN

3

PAGE CONFIDENTIAL