8.

9.

10.

11.

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Mr. Melancia asked if the Governor thought that English-language stations would continue to exist in Hong Kong after 1997. He assumed there was a British interest in this happening. The Governor said he thought this likely. There would still be a sizeable English- speaking community. He saw retaining English as a widely used language in Hong Kong as important in terms of maintaining Hong Kong as an international city. The British interest was only indirect in the sense that good knowledge of English in Hong Kong would presumably be of some help to British businessmen. We saw Hong Kong in terms of a /moral duty rather than to promote UK business

interests; but it was sometimes quite difficult to explain this to the Chinese. Melancia said that it was not so easy for Macau to retain a Portugese language station but he considered it important.

Mr.

Mr. Melancia asked if the HKG would mind a Hong Kong television station being involved in TDM. The Governor said that this would depend on whether it was permitted under the law. believed that there were certain limitations on financial involvement in foreign TV

stations.

Training of officials

He

The Governor asked if the Macau goverment was making satisfactory progress in training legal officials. Mr. Melancia said that some training had been carried out in Portugal but this was not sufficient. It would be

necessary to set up training programmes at the University of East Asia. This was an

important issue because many Portugese would probably not stay after 1999.

Movement of capital

Mr. Melancia asked if there had been significant movement of capital from Hong Kong to Taiwan. The Macau NCNA certainly had this impression. The Governor said that he did not think this was the case. Outward investment tended to go to the U.S., Canada and Australia, and increasingly to China. was balanced by inward investment.

But it

CONFIDENTIAL

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