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to see this tel.
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With
12/3
Nigel 17/3
ANNEX
X
16/3
SECRET
FM HONG KONG
TO DESKBY 110815Z FCO
TELNO 755
OF 11075OZ MARCH 92
SECRET
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MDHIAN 6318
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Mr Cox Ow12/3
Miss Williams
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Reply submitted
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PERSONAL FOR BURNS, AUSS FROM GOVERNOR
YRTELNO 459: HMOCS
1. IT WOULD BE HELPFUL IF I COULD COPY TUR TO THE SMALL GROUP HERE WHO DEAL WITH HMOCS MATTERS. THE SUDDEN ARRIVAL OF A LETTER FROM LORD CAITHNESS TO THE CHIEF SECRETARY WILL OTHERWISE SEEM RATHER STRANGE, GIVEN OUR AGREEMENT IN SEPARATE TELEGRAMS THAT A LETTER SHOULD GO FROM LORD CAITHNESS TO THE CHAIRMAN OF THE HMOCS
ASSOCIATION.
2. ANY OBJECTION?
3. I WAS EXTREMELY CONCERNED TO HEAR THAT YOU WERE WORRIED THAT THE TREASURY MIGHT ATTEMPT TO MAKE USE OF OUR FISCAL SURPLUS TO RE-OPEN THE QUESTION OF WHETHER HONG KONG SHOULD PAY FOR THE COMPENSATION SCHEME. THE POLITICAL REASONS WHY THIS IS NOT POSSIBLE ARE WELL KNOWN TO YOU AND HAVE BEEN ENDLESSLY REHEARSED. THEY HAVE NOT CHANGED. I HOPE THAT YOU ALSO HAVE ENOUGH INFORMATION ON OUR BUDGETARY STRATEGY TO EXPLAIN TO THE TREASURY WHY THE EXISTENCE OF A PRESENT AND PROJECTED SURPLUS DOES NOT MEAN THAT WE ARE SUDDENLY ABLE TO SPEND MONEY ON EVERYONE'S PET PROJECTS. YOU MIGHT BE INTERESTED TO KNOW THAT OUR LATEST ASSESSMENT OF THE EFFECT ON HONG KONG OF THE US GOVERNMENT ENDING MFN PRIVILEGES FOR CHINA SUGGESTS THAT THIS COULD REDUCE OUR FUTURE ANNUAL GROWTH RATE BY ANYTHING UP TO 2.5 PERCENT. THIS IS AN EXCELLENT EXAMPLE OF THE NEED FOR A CUSHION.
WILSON
YYYY
GDP
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