THURSDAY, NOVEMBER 10, 1983
6
A: WELL, I CAN'T BE SPECIFIC. OBVIOUSLY THE CUSTOMER INVOLVED IS NOT BRITAIN IT'S CHINA AND IT IS CHINA THAT WILL MAKE THE DECISIONS AS TO WHAT JOINT VENTURES TO GO INTO AND WHOSE GOODS TO PURCHASE AND SO ON. I CAN ONLY SAY THAT IN MY ANALYSIS THE COUNTRY THAT HAS THE MOST TO OFFER IN EXPERTISE, KNOW-HOW AND TECHNOLOGY IS THE UNITED KINGDOM BECAUSE OF THE DEVELOPMENT IN THE LAST DECADE OF THE NORTH SEA. AND YOU KNOW IT HAS BEEN A VERY REMARKABLE DEVELOPMENT THAT FROM THE LAST TIME I WAS RESPONSIBLE FOR ENERGY WHEN I WAS SECRETARY OF STATE FOR TRADE AND INDUSTRY IN '72 TO '74 AND THE NORTH SEA WAS ALL COMMENCING, BRITAIN WAS HARDLY PRODUCING ANY OIL AT ALL, WE'RE NOW THE FIFTH BIGGEST OIL PRODUCER IN THE WORLD. AND SO THE EXPERTISE WE'VE DEVELOPED. AND I SAY THE MOST RECENT OILFIELD THAT'S BEEN OPENED IN BRITAIN, THE MAGNUS FIELD, A TOTAL INVESTMENT OF, WHAT, POUND STERLING 1 400 MILLION AND 87 PER CENT OF WHAT WENT INTO THAT INVESTMENT WAS PRODUCED BY BRITISH FIRMS. NOW, THEREFORE, WE HAVE A CONSIDERABLE CONTRIBUTION TO MAKE. AND IT IS QUITE OBVIOUS WITH THE RELATIONSHIP THAT BRITAIN HAS ALWAYS HAD WITH HONG KONG WITH THE ENORMOUS COMMERCIAL EXPERTISE AND MANUFACTURING EXPERTISE THAT EXISTS IN HONG KONG, A VERY SUBSTANTIAL NUMBER OF BRITISH FIRMS INTERESTED IN THE CHINA DEVELOPMENT WILL LINK UP AND HAVE REPRESENTATIVES AND ASSOCIATES AND PARTNERS IN HONG KONG. AND I CAN'T OBVIOUSLY MAKE DECISIONS FOR THEM, BUT CERTAINLY AS A DEPARTMENT OF ENERGY I WISH TO ENCOURAGE IN EVERY WAY THAT RELATIONSHIP AND I WISH TO MAKE SURE THAT THE HONG KONG GOVERNMENT, THE HONG KONG PEOPLE ARE CONSTANTLY MADE AWARE OF ALL THE FACTS AND THE PROSPECTS THAT WE KNOW ABOUT. AND SO I'M ABSOLUTELY CERTAIN THAT OF THE SIZE OF INVESTMENTS THAT'S GOING TO TAKE PLACE
IT'S GOING TO BE OF CONSIDERABLE BENEFIT TO HONG KONG.
Q1 AS YET THERE HASN'T BEEN A GREAT DEAL OF BENEFIT BECAUSE EVEN BRITISH PETROLEUM HAS SET UP ITS OFFICES IN GUANGZHOU.
A: AS YET THERE HAS BEEN CONSIDERABLE BENEFIT IF I MAY SAY SO. THE CABLE AND WIRELESS IS OPERATING ON A VERY SUBSTANTIAL SCALE, HOULDER BROTHERS ARE WORKING ON A SUBSTANTIAL SCALE, STARR SERVICE COMPANY'S WORKING ON A SUBSTANTIAL SCALE, THE HELICOPTER CONTRACT WAS NEGOTIATED FROM HONG KONG AND SO, OF COURSE, THERE'S A WHOLE RANGE OF ACTIVITIES THAT'S ALREADY AT THIS EARLY STAGE BENEFITING HONG KONG. AS FAR AS A COMPANY OF THE SIZE OF B.P. AND OTHER COMPANIES IT MAY WELL BE THAT THEY DECIDE TO SET UP AN OPERATION DIRECT IN CHINA, OF COURSE, AND IN TERMS OF CHINA'S OWN AMBITIONS THEY WISH TO CREATE THEIR OWN INDUSTRIES IN CHINA IN THE SAME WAY AS BRITAIN WANTED TO CREATE ITS OWN INDUSTRY OUT OF THE NORTH SEA, AND I THINK THAT'S A PERFECTLY GOOD ASPIRATION AND ONE WHICH ANYBODY THAT'S GOING TO WORK WITH CHINA HAS GOT TO UNDERSTAND AND COMPREHEND. BUT THE REALITY IS THAT WITH ALL OF THE EXPERTISE AND KNOWLEDGE AND BANKING AND INSURANCE SKILLS AND MANAGEMENT SKILLS WHICH EXIST IN HONG KONG BOTH CHINA AND BRITISH COMPANIES INVOLVED ARE GOING TO NEED AND REQUIRE MUCH OF WHAT EXISTS HERE IN HONG KONG. AND SO I THINK THERE WILL BE SOME COMPANIES THAT OPEN DIRECT THERE'LL BE OTHER COMPANIES THAT WORK THROUGH HONG KONG, THERE'LL BE OTHER PARTNERSHIPS BETWEEN HONG KONG COMPANIES AND BRITISH COMPANIES, THERE'LL BE ALL SORTS OF DIFFERENT ARRANGEMENTS. BUT WHAT I'M ABSOLUTELY CERTAIN OF IS THAT THERE'S GOING TO BE A CONSIDERABLE BENEFIT TO HONG KONG.
/MR ADAMS: I