G.F. 316

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Page No. 3 of 12 pages

Refresher Courses for NCNA Cadres

7.

The recently revived Party schools in China have been

admitting cadres from Hong Kong to their courses.

Two medium

level NCNA officials, HE Mingsi and HAN Li. have recently

completed a five months' course and two others, TAM Kan and LI

Zhong, have started on a new one. The revival of the schools appears to be part of a long term programme aimed at the ideological regeneration of the Party, necessitated by the prevailing mood of pessimism and uncertainty

rife in Hong Kong as elsewhere.

which is as

Banking and Finance

8.

The head offices of eight CPG Banks incorporated in

China with branches in Hong Kong are to be re-organised and

located in Beijing. Through participation in the management

and shareholding of these banks, the Bank of China will gain a greater degree of control over their activities, aimed at uniformity of banking policy, centralised direction and greater efficiency. This will be paralleled by changes in the management

of the Hong Kong branches. However, the four CPG Banks incorporated in Hong Kong e.g. the Nanyang Commercial Bank, have not so far been

affected by the re-organisation.

9.

The Bank of China's branch in Hong Kong, which reportedly

exceeded its financial objectives for 1980 (para 3 January 1981 Report) expects further improvement in 1981, with deposits increasing by an estimated 25%, loans by 50% and overseas

remittances by 32%.

/para 10.

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