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services in an effort to improve their performance in this area. Singapore's recent budget included a tax concession for banks involved in off-shore loan syndication but, in a typically cautious Singaporean manner, on a case by case basis at this stage. Nevertheless, they are continuing to pursue their ambition step by step. Singapore is said to eschew the gambling instinct in financial services as in other matters which typifies the Hong Kong approach. For example, while expatriate lawyers have been encouraged to set up shop here to add a dimension to Singapore's financial sector, they are not permitted to advise on domestic legal matters. They complain that this restriction (largely we gather at the instance of local law firms) inevitably limits their effectiveness.
5. Singapore has always taken a close interest in the Hong Kong MTR.
While Singaporeans point out that what they have in mind for Singapore is a more sophisticated, up-market underground rai: system, they nevertheless plan to take advantage of Hong Kong's experience. Former Hong Kong MTR employees have already been appointed to some of the most senior posts in the recently- launched MRT project. Indeed, Norman Thomson, Chairman of the Hong Kong MTR, has agreed to act as a part-time consultant to the
The newly Singapore Provisional Mass Rapid Transit Authority. appointed Project Manager, Stuart Scott, is coming from the Hong Kong MTR, and many other appointments from there are expected. The deputy chairman of the PMRTA, who led a recruiting mission to Hong Kong last month, said that his team had received 600 applications from Hong Kong-based engineers for a handful of senior Singapore MRT appointments. It would appear that just as Singapore is hoping to benefit from world-wide recession to obtain very low prices in building the MRT, so she may take advantage of Hong Kong's unsettled atmosphere and the virtual completion of the MTR to attract experienced staff from Hong Kong.
6. There are of course many Singaporeans who once lived in Hong Kong. No doubt members of such families still in Hong Kong may find it prudent to consider moving to Singapore if Hong Kong loses some of its attractions. Restrictions on anything other than small
We are scale immigration into Singapore will undoubtedly remain. not aware of any suddenly increased demand for permission to settle here by Hong Kong residents, although no doubt there are some cases.
7. On the general political attitude of the Singapore government toward the Hong Kong issue, you will have seen what is said at paragraph 7 in the High Commissioner's annual review/despatch of 6 January.
Yours ever.
fonald
DA MacLeod
Counsellor (Economic & Commercial)