2
had not intervened.
MM said that until 1963 Hong Kong had had a favourable
trade balance and the aim should be to restore this position.
PC agreed. He said he hoped the letter of intent to China
Light and Power would be issued and signed by them by Christmas.
MM said the scheme of control for China Light was being con-
sidered by Executive Council now. This was an important
document since Executive Council members were not the same
as
the China Light board.
JL said the scheme of control was also important for suppliers
for it would record China Light's profit prospects. MM said
he hoped the scheme of control would go through but it must
be appreciated that it would involve frequent rises in the
price of electricity and Executive Council would have to
take the blame for this. PC said that the project was very
important for the HK/UK relationship. MM agreed it was
-
necessary
to maintain a steady flow of prestige projects these caused
headlines which in turn could be followed by less striking
trade deals. The Hong Kong market was important.
four times as much from Britain as China
It imported
did and two-thirds
the amount imported by Japan. PC asked if Sir Leo Pliatzky
had been told about this and MM said he thought he had taken
the point yesterday. JL said he was surprised at finding
himself in Hong Kong next door to a store with French and Italian
clothes they could equally well be British.
-
PC said the joint ventures in manufacturing were a project some
might be keen on.
MM said that this is what he wanted to talk
about. What was needed was an analysis of firms currently
losing.money in the Pacific region, to see whether any of them
{
./.