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WITH THE CURRENT BUREAUCRATIC AND ADMINISTRATIVE REFORMS, THIS POSITION WILL GET BETTER. AS THE SYSTEMS OF LAWS AND CUSTOMS ARE DIFFERENT, SOME BUSINESSMEN FIND IT INCONVENIENT TO DO BUSINESS WITH CHINA AS WITH OTHER COUNTRIES. THIS PROBLEM IS VERY COMMON. THEREFORE IT CALLS FOR EFFORTS BY BOTH SIDES TO KNOW EACH OTHER BETTER IN ORDER TO UNDERSTAND ONE ANOTHER'S CUSTOMS AND SO ON.
MACDONALD SPOKE OF HIS JOINT VENTURE TO PUBLISH THE BUSINESS LAWS AND REGULATIONS OF CHINA AND ASKED IF THERE ARE MANY CHANGES IN THESE LAWS TO COME.
ZHAO: WE WILL NOT CHANGE OR MODIFY THE LAWS ALREADY IN FORCE ONCE THEY ARE SIGNED. IF SOME CHANGES ARE MADE THEY WILL BE TAKEN INTO THE LAWS BUT EVEN THEN THE CONTRACTS WHICH WERE SIGNED WHEN THE FORMER LAW WAS IN FORCE WILL BE HONOURED. FOR EXAMPLE, CONTRACTS WHICH PERMITTED THE DUTY-FREE IMPORT OF SOME GOODS INTO GUANGDONG ARE STILL HONOURED ALTHOUGH NEW REGULATIONS DO NOT PERMIT DUTY-FREE ENTRY.
MACDONALD: GOING BACK TO HONG KONG, THE WORLD OUTSIDE IS WAITING FOR SOME SIGN OR ACT BY CHINA WHICH COULD GIVE GUIDANCE AND CONFIDENCE TO BUSINESSMEN THERE. MIGHT CHINA INVEST, FOR EXAMPLE, IN A NEW AIRPORT THERE AS PART OF A CONSORTIUM?
ZHAO: MY GENERAL IMPRESSION IS THAT YOU ARE EXAGGERATING A BIT THE CONCERN FELT ABOUT THE FUTURE OF HONG KONG. THERE HAVE BEEN SOME FLUCTATIONS IN HONG KONG BUT MUCH OF THE EFFECT HAS BEEN DUE TO THE WORLD ECONOMIC CRISIS AND RECESSION. AS A MATTER OF FACT, IN THE FOURTH QUARTER OF 1982, THERE WAS MORE INVESTMENT THAN PREVIOUSLY MADE IN HONG KONG.
2. IN BRIEF CONVERSATION WITH DEACON CHIU, MACDONALD'S PARTNER IN ASIAN T. V. IN HONG KONG, HE REMARKED ON HIS RECENT TALK WITH LIAO ZHENGZHI. HE SAID THAT LIAO HAD TAKEN A VERY ORTHODOX LINE AND THAT THERE WAS NO MODIFICATION OF CHINA'S POSITION ON SOVEREIGNTY. HE HAD SUGGESTED VARIOUS SORTS OF ''COMPROMISES'' TO LIAO BUT APEARED TO THINK LIAO UNRECEPTIVE. HOWEVER, CHIU SAID THAT HE HAD STRESSED THE IMPORTANCE OF THE LEGAL SYSTEM IN HONG KONG WHICH THE RESIDENTS THERE
HE HAD KNOWN FOR 140 YEARS AND WHICH THEY KNEW AND RELIED ON. THOUGHT LIAO HAD SHOWN SOME DISPOSITION TO AGREE ON THIS POINT AND THAT LIAO ALSO DID NOT SEE ANY GREAT PROBLEM IN HONG KONG HAVING A SEPARATE CONVERTIBLE CURRENCY.
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