FE/7493/A3/3
17 Nov 83
"In 1978, the Hongkong British authorities proposed that in order to develop foreign trade, importance should be attached to the development of industry. For this purpose, they established a 'commission on the diversified development of industry' and appointed many experts as members. We had a talk with these experts when in Hongkong. They said that, at that time, as the key task they had drafted a plan aimed at developing the electronics industry proposing that a scientific and technological research centre be established, so that Hongkong could establish an economic structure with a technology-intensive industry as the basis, and thus make it possible for Hongkong to give impetus to foreign trade as well as to financial circles. In 1979, the Hongkong British authorities approved this plan and set up a 'commission on industrial development'.
In order to realize this plan, the experts proposed that a total of 140,000,000 Hongkong dollars be allotted as funds for the operation. Unfortunately, the Hongkong British authorities did not approve the appropriation of this relatively small sum for the construction of Hongkong's basic economy. They have been enthusiastic about the land sales. In the three years from 1980 to 1982, the annual income from the land sales accounted for 25 to 35% of the total financial revenue. In the last two years, deficits of several thousand million Hongkong dollars were recorded in the financial accounts of the Hongkong British government. In order to cover these deficits, they still resort to measures such as tax and price increases, thus further aggravating inflation and raising the prices of commodities. From last year to this year, the inflation rate has been higher than at any time in the last 20 years."
The British side should adopt a wise and co-operative attitude
"Mr Heath, the former Prime Minister and the former Leader of the Conservative Party of Great Britain, visited Peking not long ago. During his stopover in Hongkong on his way back, he set forth rather wise views. Do you have any comment?
Qian Junrui: “I noticed the talk given by Mr Heath. This has demonstrated that there are still many wise and enlightened people on the British side. Heath, as well as some members of parliament and scholars, has asserted that the treaties related to Hongkong are unequal, and that sovereignty over Hongkong should be reverted to China. When I was in Hongkong, I saw in the newspapers that in his talk with the official and unofficial members of the urban council of Hongkong, Mr Heath publicly expressed the view that the policy of the Chinese government, towards Hongkong is realistic and rational, and he criticized the members for their unrealistic and incorrect attitude. He left the meeting place promptly after his speech, without taking any meal.
I had a number of talks with Mr Heath at the European Management Forum held at Davos in Switzerland. I expressed my great appreciation for his talks on the above occasion and for his efforts in promoting friendship between China and Great Britain in past years."
Comrade Qian Junrui handed me a cup of tea while he was talking. So that he could get a little rest, 1 purposely deviated from the theme of our talks, and had a look at his works.
Holders of foreign capital in Hongkong may set their minds at case
"Some people say that foreign investors in Hongkong are ill at ease and are worried that, once sovereignty over Hongkong reverts to China, they will lose their economic interests in Hongkong. Is that true?”
Qian Junrui: "Many economists estimate that by the 21st century the centre of development of the world economy may very possibly be the Asian-Pacific region rather than Europe. In the Asian-Pacific region, the economy of Japan is considered to be the most developed and it will certainly record a tremendous development by the 21st century. In the past 20 years, of all third world countries, the South/East Asian countries have been developing the quickest. Hongkong is an important centre of the Asian-Pacific
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