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repurchase these certificates in exchange for foreign currencies. The original intention was to tighten the control of foreign currency in China and these latest instructions are designed to prevent the holding of large amounts of outstanding certificates
abroad.
3.
·
The Head Office of the BOC in Beijing has instructed its Hong Kong Branch to negotiate with a newly established Bailey Development Company (the background of which is obscure) in Hong Kong for a loan of US$200 million which has been offered for a period of ten years at a rate of 7.5% interest per annum for an unnamed Middle Eastern financial group.
4.
Hong Kong University is currently running an extra-mural course over a period of 30 weeks which is attended, among others, by staff of the CPG-owned banks in Hong Kong. The curriculum includes audit management, banking business, book keeping, law and personnel
management.
Corrigendum to LIC Report for March 1981
5.
In the March LIC Report (paragraph 2), it was stated that the head offices of eight CPG banks incorporated in China which have branches in Hong Kong were to be reorganised and moved from their various locations in China to Beijing. It has now been learned that, in order to preserve an outward appearance of independence in banking, the CPG authorities have long preserved the fiction that these banks have their head offices in various parts of China whereas they have been located in Beijing for some considerable time.
Commerce
6.
Only Guangdong Province, Fujian Province and Tianjin Municipality may conduct foreign trade independently of the China Resources Company in Hong Kong and become responsible for their own profitability (para 5 LIC February report). A Provincial Commerce and Trade Centre has now been established at the site of the Chinese Export
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/Commodities
B