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023624 MDLY 9242 $
(A) INFLATION. THE EFFECT HAS BEEN MITIGATED BY THE SWITCH TO A SERVICE-BASED ECONOMY BUT THE UNDERLYING PROBLEM IS CAUSING ANXIETY TO THOSE WHOSE LABOUR AND HOUSING COSTS COMPARE UNFAVOURABLY NOT SIMPLY WITH CHINA BUT EVEN WITH PLACES AS FAR
OFF AS AUSTRALIA.
IN
(B) EXCESSIVE CHINESE INVESTMENT IN THE HONG KONG MARKET AND
LOCAL PROPERTY. WHATEVER THE POLITICAL BENEFITS, THIS IS SEEN AS VOLATILE MONEY, UNPRODUCTIVE AND A POTENTIALLY DESTABILISING BOTH IN RELATION TO FUELLING INFLATION AND IN ITS
UNPREDICTABILITY.
(C) THE RELIANCE ON JAPANESE FINANCE. A TREMOR IN TOKYO COULD
BRING DOWN SOME LARGE HOUSES HERE.
5. THE ISSUES THAT FILL THE NEWSPAPERS SEEM OF LESSER
IMPORTANCE. BUSINESS LEADERS ARE HAPPY TO LEAVE THE POLITICIANS
AND DIPLOMATS TO SORT OUT DISPUTES WITH PEKING. THEY HAVE THEIR
OWN CONTACTS AND ARE CONFIDENT THAT A STEADY CONVERGENCE OF INTERESTS, E.G. IN RELATION TO THE NEW AIRPORT, WILL BRING SOLUTIONS IN DUE COURSE.
6 =
THE STRENGTH OF THE BUSINESS RELATIONSHIP WITH CHINA IS STRIKING. AT ALL LEVELS IT IS SEEN AS A GOOD PLACE IN WHICH TO DO A DEAL SLOW AT FIRST (BUT THEN SO IS EVERYWHERE ELSE) BUT
FLEXIBLE AND A GOOD PARTNER ONCE THE CONTRACT IS SEALED.
BRITISH INTERESTS
BRITAIN'S
7. NOWHERE ARE THE STATISTICS MORE UNRELIABLE. POSITION IS IMMENSELY STRONG. CALL J SWIRE AND CO BRITISH AND
OUR EXPORTS SOAR. LIST THE HONGKONG BANK IN LONDON AND THEY DISAPPEAR THOUGH THE TOP OF THE CHART. THAT TRADITIONAL BRITISH INSCRUTABILITY IS ONE OF OUR ASSETS. BRITISH COMPANIES SUCCESS IN THE MAJOR PROJECTS AND IT IS COMMENDABLE ARE BASED ON THEIR INTERNATIONAL ASSOCIATIONS. BUT SUCCESS IN MANY OF THE FORTHCOMING PROJECTS MAY HINGE ON ECGD SUPPORT. WE WILL NEED TO ENSURE, FOR POLITICAL AS WELL AS COMMERCIAL REASONS, THAT BRITISH COMPANIES GET MAXIMUM COVER.
8. MOST OF OUR MAJOR EXPORTERS OF GOODS AND SERVICES ARE HERE AND WITH CERTAIN EXCEPTIONS (BP OFFERS SOME SAD LESSONS) THEY ARE
PLANNING INTO THE NEXT DECADE AND MAKING THEIR DISPOSITIONS
THE LEADERS - SHELL, C AND W, GEC-ALSTHOM, ICI,
ACCORDINGLY.
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