TNAG-2487-FCO40-3618-Future-relations-between-Hong-Kong-and-China-1992 — Page 44

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continuing strong position in Hong Kong post-1997 to promote our interests in the region? (encouraging major British commercial and financial presence: use of Hong Kong as a springboard for British companies in Southern China and as a

hub for operations in the region; maintaining the wider

links: British Council, role of new Consulate General).

I

4. Going beyond my patch, I thought that one issue deserved a bit more prominence in the snapshot section under "external

factors". This is the relationship which all the major

economies of the region have with the US. We did a lot of

analysis while I was in Washington on the links between the

Asian NICs and the US in terms of the massive trade surpluses

they all run with the US and the fact that all their

currencies were linked to or tracked closely the US dollar.

think it would be worth looking briefly at the position which this gives the US in the region. Is it really true that in case of the NICS economic growth has been largely been

self-generated? Much of it has surely come from export-led manufacturing. Would they not be disproportionate sufferers if the GATT deal collapsed? As their labour costs rise, and the recession in the West continues, will they not be hard pressed to keep up growth rates of the last decade?

Redate

PF Ricketts

paperpol.asia.PETER

JEB