ནཾཋཱ,

SCR 1/4731/49 III

JF R Martin Esq

Far Eastern Department

F CO

CONFIDENTIAL

Eylü

Mr Banten BULG. pa. 8

24 September, 1975

I wrote to you on 6 May and again to Nick Fenn on 18 June (copied to you) about reassurances given to Jardines by representatives of the NCNA in relation to the future of Hong Kong and the need for continued British investment here.

2.

You may be interested in some further evidence that the local communists are continuing to take this confident and friendly line about the future in discussion with people here.

3.

A recent example was provided at a lunch party given on 11 September by Stanley HO at his house in Hong Kong, when the guests were a group of local businessmen. Eric Ho, the Director of Home Affairs, was also present, and I am indebted to him and to one of the other guests for the following account.

4.

Stanley HO said to his guests that he had recently attended a dinner given by Henry Fok for Hong Kong Chinese real estate developers. HO implied that the dinner party had been given with the blessing of the NCNA who sent a representative to attend it. Eric Ho thinks this was LI Chu-sheng (c.f. my letter of 6 May).

5.

Stanley HO told his guests how, at the dinner party, Li had explained that China was satisfied with the present state of Anglo-Chinese relations and that all the businessmen at the dinner could tell their friends that they need have no fear about investing in Hong Kong. Their investments would be absolutely safe until at least 1997, subject to the following four factors:-

(a)

that there was no world war;

(b)

that the Hong Kong Government abstained from policies which might irritate China. In this context Li made references to the need to prevent any significant Russian penetration of Hong Kong,

CONFIDENTIAL

/contd..

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