4.
This tension was evident at a dinner I attended
yes erday evening hosted by Inchcape and including Vincent Lo and John Gray, Chairman designate of the Hongkong Bank.
Highlights from the evening were
5.
(a)
Inchcape's insistence that they take no part in political issues, have no views and intended to continue highly profitable business in Hong Kong and
China;
(b)
(I
Vincent Lo took the opportunity to whisper in my ear that British trade would suffer heavily from the current problems and he wondered whether
there would be a role for the BTC in future years.
was particularly struck by this remark since it was the only occasion on which anyone in recent weeks had suggested that fall-out from constitutional problems would effect British trade). He was on the defensive
for much of the evening and his performance was unimpressive;
(c)
John Gray gave a balanced analysis of the bank' s
dilemma. problems. Staff and customers alike were
strongly behind the Governor: on the other hand, senior management were receiving threats from Peking.
He was not sure where the bank's interests actually
lay.
On two recent occasions Mr Purves has expressed his
unhappiness in strong terms, stressing that he
was not a politician but a businessman and simply thinking
aloud.
6.
There has been much discussion about the extent
to which the stock exchange index is a reliable thermometer.
Evidently there are a variety of reasons for current
optimism, notably the successful outcome of the PNC, buoyant
prospects for trade with China and the strength of the dollar.
The underlying health of the Hong Kong economy is remarkable
and it is likely to remain resilient in the short term.