8.
The costs of "gifts" and "guanxi" may be 3-5% of the operating costs of their businesses in China. Such costs are as yet bearable and are not viewed by Hong Kong investors as an economic disincentive.
9.
When offering gifts, the businessmen consider they are victims of the system and would prefer to work in a more honest environment, quoting Hong Kong and Singapore as examples.
10.
The respondents do not consider they are introducing corruption to Hong Kong, nor that
Hong Kong public servants are involved in such corrupt activities. Some however are concerned as to the effect of such an environment on Hong Kong post-1997.
11.
Some Hong Kong businessmen reported that they adopt following measures to overcome their own difficulties :
the
12.
* Approach the "co-ordinating offices" set up by some of the PRC authorities which provide "one-stop" service in handling all administrative procedures by paying an explicit management fee;
measures.
Hire local expeditors in China to facilitate better communication with the relevant PRC authorities. The legality this practice hinges on individual cases but this question is not a matter of concern for Hong Kong investors;
of
As far as possible make all the necessary business arrangements in Hong Kong;
Sign contracts with short-term and minimum commitment (e.g. signing processing contracts) with their Chinese partners;
Prefer to exercise their authority in firing dishonest staff instead of seeking assistance from the relevant law enforcement agencies in China.
Hong Kong businessmen are in favour of anti-corruption They consider education and publicity to be the most effective overcome the
and that law corruption problem they face, enforcement cooperation between ICAC and its Chinese counterpart alone is not enough.
measure to
Follow-up Action by ICAC
13.
The findings coincide with ICAC's strategy. The Commission recognises that cross-border corruption is a growing problem which is inevitable as a result of the rapidly increasing volume of trade and economic activities between the two places. The Commission also recognises that it is દી mutual problem for both Hong Kong and China because it takes two, i.e. a Hong Kong businessmen and his counterpart, to commit a corrupt act.
PRC