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Hong Kong and Shanghai Bank had recently called on C Itoh.
The Japanese had been shocked and dismayed by the negative and gloomy attitude which Mr Purves had projected about Hong Kong's future.
The view of Japanese bankers
8.
In discussion with representatives of the Bank of Tokyo, the Fuji Bank and the Daiwa Bank, I asked how they viewed
loans to Hong Kong for repayment after 1997. Their response was that they were willing to lend long-term to Hong Kong
(eg their participation in the MTRC loans) but were evasive
when I pressed them on whether such loans were equated with "China risk". I gained the impression that they probably
were.
To a man, however, they stressed that Japan took a
long-term strategic view of Hong Kong and remained bullish,
although the deadlock over the airport was evidently
beginning to arouse serious doubts and worries. I learnt
that the Japanese Consul-General in Hong Kong was chairing a
regular study group, consisting of senior Japanese commercial figures, to assess the situation on a regular basis. The message they are sending back to Tokyo is one of
worry and concern.
Conclusion
9. All in all, I found this a most useful and worthwhile
trip. I was impressed by the interest in and knowledge of
Hong Kong which all my interlocutors displayed. The
Japanese see Hong Kong not only in terms of commercial
opportunity but also as part of the wider strategic picture. For them, the maintenance of Hong Kong's prosperity and stability (and the contribution which a stable and
prosperous Hong Kong can make to southern China and more
widely) have a significance which goes well beyond the
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