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economy (more than the Stock Exchange falls). The Governor instructed Tony Eason to draw up one land programme in the normal way; but also personally to prepare (without letting others know) a fallback land programme within 50 hectares. Tony Eason confirmed that a programme of 50 hectares a year, combined with more modifications and exchanges of land, could supply the needs of the market to a reasonable extent for two years or so. But if the Chinese sought to challenge our right to act in this way something they could not do legally under the Joint Declaration or without contravening agreements reached in the Land Commission - this would have a serious effect. In their present mood, this could not be ruled out. The CS said that we might need to consider adjusting the 70 per cent mortgage level if we needed to bolster the market at any point.
Yours sincerely
hémia
(WG Ehrman) Political Adviser
c.c.
SCA (Strictly Personal)
PS/GH DPA
w/o enclosures
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王
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