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though he thought that the Chinese would ease up once they had made their point. The Li family will be among the most sensitive to atmosphere from China. But the others are watching as well and few of them will want to run risks unnecessarily. The architects, Terry Farrell and Co, report hesitation among Hong Kong businessmen over appointing British architects for projects in China.
5. We are advising British businessmen not to be put off by any of this. They should pursue their business regardless of statements from China, which are to a degree contradictory. They are doing just that, though there is now some serious concern, which will of course be reported to Head Offices in London.
6. In these circumstances, and particularly in view of the reported remarks by the mayor of Canton (Hong Kong TUR) which go further than the other statements, I believe it would be right for the European Commission to seek clarification from the Chinese. (Peking tel no 1614).
7. This is seen in Hong Kong as a fairly narrow issue. In general, the business community continues to show a remarkable capacity for ignoring our political differences with China. Both the Hang Seng index and property prices are at record levels.
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.HK COMMERCIAL GENERAL
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ECONOMIC ADVISERS
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JOINT DIRECTORATE
LEGAL ADVISERS//MS BROOKS
.AND MS BARRETT
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PS/MR GOODLAD
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MR CROWE
SIR J COLES
MR HUM
MR BONE MR MINGAY
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