TNAG-2468-FCO40-3592-Most-favoured-nation-status-for-China-Hong-Kong-interests-1992 — Page 174

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I WILL BE GLAD TO OFFER SOME INITIAL COMMENTS ON THE

U.S.-HONG KONG POLICY ACT. WE HAVE BEEN EXAMINING THE

IMPLICATIONS OF 1997 FOR U.S.-HONG KONG RELATIONS AND OUR

INTERESTS IN THE TERRITORY, AND THIS BILL HAS HELPED US SHARPEN OUR OWN THINKING ON THIS ISSUE. THE ADMINISTRATION SUPPORTS THE GOALS OF THIS LEGISLATION AND IS PLEASED THAT CONGRESS

SHARES OUR INTEREST IN THE FUTURE OF HONG KONG. WITH

MODIFICATIONS, THIS LEGISLATION CAN MAKE A SIGNIFICANT CONTRIBUTION TO U.S. EFFORTS TO PREPARE FOR HONG KONG'S

REVERSION TO CHINESE SOVEREIGNTY.

RENEWED CONFIDENCE

FIVE YEARS BEFORE ITS REVERSION TO CHINA, HONG KONG SEEMS TO BE IN A NEW CYCLE OF GROWTH. THE TERRITORY APPEARS TO HAVE

LARGELY RECOVERED FROM THE BLOW TO ITS CONFIDENCE WHICH

OCCURRED AS A RESULT OF THE TIANANMEN TRAGEDY IN JUNE 1989.

SIGNS OF PROSPERITY ARE EVERYWHERE.

SLIGHTLY IN 1991.

PERCENT PER YEAR.

EMIGRATION DECLINED

ECONOMIC GROWTH HAS RISEN TO A RATE OF FOUR

UNEMPLOYMENT REMAINS VERY LOW AT TWO

PERCENT. HONG KONG'S REAL ESTATE MARKET HAS GONE UP NEARLY 50%

IN THE PAST YEAR. AGREEMENT HAS BEEN REACHED BETWEEN BRITAIN AND CHINA ON A $16 BILLION PROJECT TO DEVELOP A NEW AIRPORT AND