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1
Inward Investment
CONFIDENTIAL
4. Following the signature of the Hong Kong agreement we discussed with the Hong Kong Government the extent to which
HMG
be should
seen
to
be
pursuing
inward
investment
opportunities in Hong Kong. We agreed that HMG should adopt ordinance": although a certain level of "self-denying
regarded as normal
a
investment promotion activity could be
and legitimate, we should not attempt to inspire anything
remained our policy. This has remained
more.
Regional Development Agencies
The majority of the
explained (by the
DTI's Invest
whom to
our policy has been in Britain Bureau) have
adhered to it.
Governor
Governor believes
policy of activities could
consider
5.
Although during his visit to Hong Kong some members of the business community told
told Mr Morrison they thought that
restraint on inward investment
safely be relaxed, now
this
both
we
promotion
and the
that this
that local
would be
most
unwise.
The
on sensitivities
will increase
as
we approach 1997.
An
call
this issue
increase in inward
into question
investment promotion activities would
our
real motives towards Hong Kong. We would be open to
accusations,
from
Hong
Kong
opinion
and
also
from the
Chinese, that, despite our commitment under the Agreement to maintain Hong Kong's stability and prosperity up to 1997, we were now prepared to undermine the Agreement by encouraging flighty capital to move from Hong Kong to the UK before the transition in 1997. This would reinforce latent suspicions among both groups; affect our relationship and co-operation with the Chinese; and damage confidence in Hong Kong.
Passports
for
6.
The question of British citizenship in return inward investment into the UK came up earlier this year in a the Home Secretary. proposal from Sir Michael Sandberg to
CONFIDENTIAL
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