TNAG-2749-FCO40-3964-Economic-situation-in-Hong-Kong-1993 — Page 219

COCE 18-77

Reference

13. On balance there appear to be few political or economic checks to the current economic expansion. Whilst the economic position is undoubtedly much stronger than in 1988 (the last overheating episode) there are certain parallels in that few actors on the scene have much incentive to put on the brakes. Even a gentle touch as proposed for 1993 seems a little complacent. But if problems of managing the economy multiply the politicians tone may change.

Charter E.L

Christopher Lane

8 January 1993

cc Dr Bristow Smith, FED

Mr Clark, RAD

Mr

Lillie, PELING