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MDHIAN 6121
CONFIDENTIAL
FM BTC HONG KONG
TO IMMEDIATE FCO
TELNO 19
OF 190701Z JANUARY 93
AND TO IMMEDIATE DTI, ODA, BANK OF ENGLAND, HM TREASURY
INFO IMMEDIATE PEKING, ATTC TAIWAN, SINGAPORE, WASHINGTON, LISBON
Seems
Omer
optimistic
MY TELNO 12: THE BUSINESS ROUND-UP
SUMMARY
1. HARD EVIDENCE MOUNTS OF AN IMPROVEMENT IN THE CHINA/HONG KONG CLIMATE. BUSINESS LEADERS INCREASINGLY SUPPORTING THE GOVERNOR AND TAKING DECISIONS TO THAT EFFECT. THOUGHTS ON THE DRAFT TRADE STRATEGY AND IMPLICATIONS FOR THE AIRPORT.
DETAIL
2. AN INCREASING NUMBER OF BUSINESS LEADERS NOW BELIEVE THAT THE ROW WITH CHINA IS OVER BAR THE SHOUTING. PRINCIPAL ITEM OF EVIDENCE IS THE DECISION ANNOUNCED LAST THURSDAY BY CITIC, CHINA'S MAJOR STATE INVESTMENT AGENCY (IN EFFECT, CHINA'S BIGGEST MERCHANT BANK) TO JOIN UP WITH C AND W FOR THE NEXT HK FRANCHISE, ABANDONING THEIR EARLIER IDEA OF A COMPETITIVE BID. THE REASON GIVEN BY CITIC IS THE PROSPECT OF WORKING TOGETHER IN CHINA.
3. NEWSPAPERS OF 17/1 ANNOUNCED A 'BUYING SPREE IN HONG KONG' BY CITIC MANAGING DIRECTOR (SON OF RONG YIREN) FLUSH WITH A USD 400 MILLION WAR CHEST. THE STOCK EXCHANGE CONTINUES TO RISE.
4
"
ALL CONTACTS WITH BUSINESS LEADERS OVER THE PAST TEN DAYS REINFORCE THIS CONCLUSION.
GUANGZHOU METRO
I
5. ARMED WITH THE TIMELY AND PRICELESS OFFER OF GBP200,000, HOPE TO GO TO CANTON SOON WITH A SENIOR REPRESENTATIVE OF THE HONG KONG MTRC (PREFERABLY THE CHAIRMAN, MATHERS) AND PARRY, IN ORDER TO SIT DOWN WITH THE CHINESE AND SEE HOW WE CAN BEST HELP. I WILL ASK GRAHAM'S COMPANY (MY TELNO INTRA 6) TO LEND HIM SO HE CAN MAKE THE ARRANGEMENTS WITH MY CTU STAFF: THE PRESENCE OF A REPRESENTATIVE OF THE COMMERCIAL SECTION OF THE EMBASSY WILL BE HELPFUL. WE WILL SUGGEST DATES ASAP: WE SHALL NEED TO DEBRIEF THE ODA TEAM FIRST. (SEE SEPARATE TEL).
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PAGE CONFIDENTIAL
RECE
INDE
HKD 0243 120/1
2 0 JAN 1993
OFFICE?
SIRY
o Take.