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CONFIDENTIAL
LUNCH WITH SIR Y K PAO, 27 JUNE
References: A. Financial Times article
B. Economist article of 23
of 25 June
June and Far East
Economic Review article of 14 June about
Hong Kong's second cable network
C. Prime Minister's foreword to biography of
Sir Y K Pao
BACKGROUND
Telegon
Mailed
1.
Sir Y K Pao (71), although now in semi-retirement is
still one of Hong Kong's most influential figures. Since
fleeing to Hong Kong from Shanghai in 1949, he has amassed a
substantial fortune. His public companies alone account for
some 8% of Hong Kong's stockmarket capitalisation.
He
2. Sir Y K Pao's wealth and extensive business interests
give him considerable influence, both in the territory and
in China, where he has made a number of large donations.
was one of 8 vice-chairmen of the Basic Law Drafting
Committee and is supposed to be on good terms with Deng
Xiaoping. He was in Peking recently for the final,
celebratory meeting of the Basic Law Drafting Committee.
While there, he had dinner with Deng Xiaoping as he usually does on visits to Peking. Sir Y K Pao will probably wish to
give the Secretary of State an account of the dinner. The main thrust of Deng's remarks (which have appeared in the
press in Hong Kong) was that stability in China was essential for the countries of the region: if there was
instability, or even civil war, the numbers leaving China would cause chaos in the surrounding area, including Hong
Kong which therefore had a vested interest in China's
MAXAGB/2
CONFIDENTIAL