1
WINAAK (2)
Background
Mr Li
1.
B
C
Mr Li was born in London and educated at Cambridge. A copy of
his CV is attached. He is a prominent banker (Chief Executive of
the Hong Kong-based Bank of East Asia) and wields considerable influence in financial circles. He is also a Legislative Councillor
(representing the financial functional constituency) and
Vice-Chairman of the Basic Law Drafting Committee. Mr Li has been
tipped as a possible candidate for the post of Chief Executive
after 1997. (See attached profile from Financial Times). His
political inclination is conservative, although he is not publicly
aligned to any particular political grouping.
2. Mr Li is visiting London on his way to attend the IMF/World
Bank meetings in Washington. He left Hong Kong on 16 September and
was not there during Mr Maude's visit.
Brain Drain
3. The number of people leaving Hong Kong has increased sharply in
the last couple of years, from 13,000 in 1986, to 45,000 in 1988.
The impact of recent events in China is unlikely to show up in
emigration figures until 1990/1991. The Hong Kong Government
estimates that emigration may reach 55,000 in 1990 and 60,000
thereafter. Private estimates put the figure a lot higher.
4. The banking sector has been particularly affected by the brain
drain. Mr Wrangham of the Hong Kong and Shanghai Banking
Corporation told Mr McLaren last week that 20% of the Bank's
managers had resigned last year. Like other companies, the
international banks are doing what they can to counter the problem
by posting key employees abroad to qualify for third country
passports and then bringing them back.
5. Mr Li is likely to stress the need for the financial sector to
be fully taken into account in the nationality package.