UK EYES A
THIS IS A COPY
THE ORIGINAL HAS BEEN RETAINED IN THE DEPARTMENT UNDER SECTION 3 (4) OF THE PUBLIC RECORDS ACT 1958
CRC is apparently
the Chica associated commercial operations in Hong Kong.'
responsible directly to the Ministry of Foreign Trade in Peking. Similarly to the banks it has currently been engaged in a Five Year Plan (commencing 1976 and
apparently concurrent with China's 5th Five Year Plan 1976-80) to expand its
activities and achieve maximum utilization of Hong Kong as a source of foreign
exchange both through direct and entrepot trade.
17. Other Capitalist' Activity. The extent of Chinese involvement in the
capitalist commerce of Hong Kong is well illustrated by her use of extensive advertising for Chinese products. An advertising budget of $1 million has been
reported for 1976 and although Western expertise is used (eg in the production of
TV commercials) all the work is channelled through the 2 communist controlled
advertising agencies. China also has an interest in Hong Kong's film industry
(the second largest in terms of output in the world) through 3 film production
companies and recently, secret intelligence indicates, these companies have been
directed to ensure that their product has greater market appeal although certain
subjects are still taboo.
An
18. Chamber of Commerce. Communist commercial interests vis a vis the Hong Kong
Government and other commercial bodies in Hong Kong are looked after by the
Chinese General Chamber of Commerce which is controlled by the communists.
indication of the Chamber's generally pragmatic approach to commercial activity
in Hong Kong was its remarks about the reports that the Independent Commission
against Corruption (ICAC) was to investigate the use of "commissions" ie bribes,
in commercial life. The Chamber said that it was opposed to this type of
investigation since "Commissions" were part of the normal business practice of
Hong Kong.
19. Manufacturing. Communists have long owned or controlled a number of small
manufacturing concerns engaged in the production of traditional products in Hong
Kong eg cigarettes, monosodium glutinate, (communist firms have virtually complete
control of this product's manufacture), and small metal objects. But in the last
18 months or so a new development has emerged. China appears to be taking full
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UK EYES A