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SECRET 高度機密
Page No. 2 of 9 pages
Finance and Banking
4.
WANG Kuang, First Secretary in the NCNA Hong Kong, called together a group of Hong Kong's leading Chinese businessmen in an attempt to raise capital for the setting up of a "Hong Kong Development Company", whose function would be to finance the development of the coal industry in Guizhou. Contrary to WANG's report to Beijing, the response was not encouraging, causing WANG some concern. Subsequently, representatives from the State Import and Export Management Commission, led by Vice-Minister ZHOU Jiannan, arrived in Hong Kong with the same objective: the latter included investment in the improvement of the railway system in South China, which ! would enable Guizhou coal to be moved more easily.
5.
At a review and planning meeting held in China in August for managers of overseas branches of Chinese banks and insurance companies, the chairman of the Bank of China criticised the 13 communist banks in Hong Kong for losses of up to HK$15 m. over the last two years. These losses resulted from poor control procedures, which had proved ineffective in guarding against mistakes and fraud by staff and customers.
6.
The Audit Department of the Bank of China in Hong Kong has proposed numerous changes to improve efficiency in local CPG banks and insurance companies. These include streamlining managerial control; setting up specialist teams for research, planning and business development; and reorganisation of the present monetary and accounting systems.
7.
The 13 communist banks in Hong Kong now have 200 branches in the territoty: the 200th was opened during the month. ZHANG Wenchong, the general manager of the Bank of China in Hong Kong has left for a 5-month political study course in Beijing. He thus follows a number of other cadres from Hong Kong who have attended similar courses (para 7, March 1981 Report).
/ para 8.
G.F. 316
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