SECRET 高度機密
-2-
Page 2 of 5 pages
Finance
5.
In April, the Bank of China withdrew a long standing guarantee (a rare one in the banking world) to protect Reminbi deposits against adverse changes in the Rmb/HK $ exchange rate. The not surprising result has been a decline in the volume of such deposits.
6.
The Bank has edged a little further forward in facilitating business between China and Taiwan, It has authorised all CPG backed commercial organisations in Hong Kong to accept accounts and Bills of Lading from companies connected with Taiwan; settlement of accounts must, however, still be made through third parties.
Propaganda
7.
Communist press and film circles have resumed study sessions, abandoned following a Central Committee decision in December 1978. The aim is probably to tighten control and discipline in an area prone to deviation. But some of the staff of at least one newspaper, the "Ta Kung Pao", regard such sessions with a certain cynicism, seeing the new policies, including the 'Four Modernisations" as little more than moves in the power struggle within the Chinese leadership.
8.
With a view to economy and rationalisation, the New China News Agency is considering a merger of two of Hong Kong's major pro- communist morning newspapers, the "Hong Kong Commercial Daily" (circulation 45,000) and the "Ching Po Daily" (40,000). The possible closure of two other smaller newspapers, the "Tin Fung Daily" and the "Hong Kong Evening News", which have been in financial difficulties, is also under review. The present circulation of pro-communist
newspapers is about 300,000 daily, representing some 15 percent of the Hong Kong total,
9.
The communist film industry in Hong Kong continues its uphill struggle to achieve profitability the latest move being the cultivation of directors from non-communist film and TV companies but among its many difficulties is the delay it encounters in obtaining Chinese official approval of its scripts: this can take up to 18 months.
United Front
10.
It has now been decided that six selected Hong Kong athletes, plus two or three from Macau, will compete as individuals in track and field events at the Fourth Chinese National Games (para. 16, May Assessment).
/National People's Congress..
SECRET 高康機密