TNAG-2714-FCO40-3920-House-of-Commons-Select-Committee-on-Foreign-Affairs-enquiry-1993 — Page 21

14-JUL-1993 14:39

TRANSCRIPT

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Gallagher

MR ALASTAIR GOODLAD

0491 579838

P.18

SELECT COMMITTEE 14 JULY 93

18

have legislation in place in good time for the local elections in 1994 and the Legislative Council elections in 1995. So there are clearly points at which the talks will have to be completed.

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On the question of the damaging nature of uncertainty, of course uncertainty is bad for business confidence, we all know that, it is a cliche really to say it. But you have had in Hong Kong uncertainty of a pretty unique nature for many years and Hong Kong is used to that and people in Hong Kong are extremely realistic. So the present level of uncertainty about what precisely will emanate from the talks and when is just another piece of uncertainty in the glorious development of Hong Kong. And it does not seem to have done much damage this year. Since the Governor made his proposals last October the Stock Market has gone up by approximately a third and the property market by about 40 percent and the economy is performing extremely strongly. So this isolated area of uncertainty has not damaged confidence. Clearly were matters to drag on indefinitely, which they will not I am sure, then that would be an element of uncertainty that would be more damaging than helpful. But as I say, Hong Kong people have

lived where they have for many years and done extremely well by taking a pretty robust attitude.