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5
in September 1983 that it intended to start doing business
in Hong Kong in the same way that Everbright does.
Thirdly, it is also possible that China Resources intends
to limit its liability to the extent of its share capital of HK$200 million and there is a longer term possibility of the company "going public" in order to raise capital in the money market of Hong Kong. Fourthly, China Resources' new status as a limited holding company in Hong Kong may
enable it to enjoy greater independence from the Chinese
Government, so that it will be able to have greater
flexibility in international transactions which may be
politically sensitive.
8.
The exact nature of the Everbright Industrial
Corporation and its sister company Violight Industry Co.
Ltd. is still very much a mystery, as is the source of their capital. Everbright Industrial Corporation was
inaugurated in Beijing in mid April 1983. But it is supposed to be a non-governmental corporation of China with its headquarters and most of its activities based in
Hong Kong. Its sister company, Violight Industry Co.
Ltd., was incorporated in Hong Kong in May 1983 with a
nominal capital of HK$1 million. Both of them commenced
business in August 1983. In the first few months of their history, these two companies have engaged in a number of
spectacular investment moves, mostly in the property
sector. It appears that they have an abundant supply of funds and that their operations have complete freedom from interference by the Ministries in the Chinese Government
and by other China-interest organisations in Hong Kong.
All indicators suggest that the Chairman of these two
companies is responsible only to the very top level of the
Chinese Government.
G.F. 326
CONFIDENTIAL # 3