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FM BTC HONG KONG
TO IMMEDIATE FCO
TELNO 43
OF 010115Z JANUARY 92
INFO IMMEDIATE DTI
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055263
MDHI 1536
FINAL PART OF TWO.
DTI FOR MEEDWAY, OT2 AND HALL, PEP.
11. BEHIND THESE AND OTHER PROJECTS LIES THE CRITICAL ISSUE OF ECGD SUPPORT. AS 1997 LOOMS, AND AS THE TREASURY REQUIRES ECGD TO PAY CLOSE HEED TO ITS COUNTRY LIMITS, WE WILL NEED TO ENSURE FOR POLITICAL AS WELL AS COMMERCIAL REASONS, THAT BRITISH FIRMS COMPETING FOR HONG KONG'S BIG PROJECTS GET THE BEST POSSIBLE SUPPORT. THE ISSUES ARE WELL-KNOWN BY ALL CONCERNED AT WHITEHALL, BY MINISTERS AND OFFICIALS ALIKE. SUFFICE THEREFORE TO SAY THAT TO KEEP OUR FIRMS WELL UP ON THE STARTING GRID THEY NEED NOT ONLY TO BE CONFIDENT OF ECGD SUPPORT, BUT WE HAVE TO BE READY TO PROCLAIM THAT SUPPORT AS EARLY AS WE POSSIBLY CAN IN THE PROGRAMME OF EACH PROJECT. THE SUPPORT OF ECGD SO FAR, HAS BEEN A VALUABLE HELP IN KEEPING THE BRITISH FIRMS IN CONTENTION. IT IS A CARD THAT WE SHOULD CONTINUE TO PLAY AS EFFECTIVELY AS POSSIBLE.
12. MEANWHILE THE HONG KONG ECONOMY, ON ANY WORLD SCALE, CONTINUES TO FLOURISH. THE COMPARISON BETWEEN THE CONTINUED GROWTH, EVER HIGHER PRODUCTIVITY, AND NEGLIGIBLE UNEMPLOYMENT, IN THE PACIFIC RIM IN GENERAL AND IN HONG KONG IN PARTICULAR, ON THE ONE HAND, AND THE ECONOMIES OF EUROPE, NORTH AMERICA AND AUSTRALASIA ON THE OTHER IS IN ITSELF A MAJOR FACTOR IN HONG KONG'S GROWING CONFIDENCE ABOUT THE FUTURE. EMIGRANTS ARE STILL LEAVING IN SIGNIFICANT NUMBERS, BUT MORE AND MORE ARE COMING BACK WHEN THEY FIND THAT JOBS ARE ALL BUT UNOBTAINABLE IN THE COUNTRIES TO WHICH THEY WENT. ALSO OF MAJOR AND GROWING SIGNIFICANCE IS THE VERY DRAMATIC GROWTH OF THE INDUSTRIAL AREA IN CHINA IMMEDIATELY ADJACENT TO THE HONG KONG BORDER AND FUELLED BY HONG KONG ENTREPRENEUS. THE ATTRACTION IS CHEAP LABOUR AND CHEAP LAND, TOGETHER WITH EASY ACCESS TO AND FROM HONG KONG. ALL OF THIS TOO CREATES FURTHER OPPORTUNITIES FOR HONG KONG SERVICE INDUSTRIES, PARTICULARLY IN THE FINANCIAL SECTOR, AND THE GROWTH OF SERVICES IS ALSO A NOTEWORTHY CHANGING FEATURE OF THE HONG KONG ECONOMY.
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