Mr McLaren
JAPANESE INVESTMENT IN HONG KONG
The
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FROM: A R Paul
Hong Kong Department
DATE: 25 October 1990
cc: Mr Burns
Mr Davies, FED
1.
You asked for chapter and verse on Japanese investment in Hong Kong, in the light of Mr Keswick's comment that levels of Japanese investment in the territory were not impressive and that the Japanese were taking a very cautious attitude towards Hong Kong's future.
2. I attach the advice we have received from Hong Kong and Toyko.
It
3. Neither Hong Kong or Tokyo bear out the Keswick thesis. Indeed, all the evidence points in the contrary direction. Japanese financial institutions (which account for more than half the total assets of Hong Kong's banking sector) still appear to be very bullish about investment in Hong Kong. is however a fact that given the weak performance of the Japanese Stock Market and uncertainties arising from the Gulf Crisis, Japanese banks and investment houses are
pulling in their horns worldwide.
some impact on Hong Kong.
This will inevitably have
Roseline Manda
for AR Paul
MADAGZ/1