XN000022-1982-10-11 — Page 7

MONDAY, OCTOBER 11, 1982

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SWEDES URGED TO INVEST IN HONG KONG

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THE DIRECTOR OF INDUSTRY, MR PETER TSAO, TODAY (MONDAY) URGED SWEDISH BUSINESSMEN TO EXPLORE HONG KONG'S POTENTIAL AS AN OFFSHORE EASE FOR INDUSTRIAL INVESTMENT.

ADDRESSING A SEMINAR ORGANISED BY THE SWEDISH TRADE COUNCIL IN STOCKHOLM, MR TSAO NOTED THAT DESPITE THE CONSIDERABLE EFFORTS IN INDUSTRIAL INVESTMENT PROMOTION BY HONG KONG'S OWN AGENCIES AND THE SWEDISH TRADES COUNCIL OVER THE PAST 10 YEARS, SWEDISH INVESTMENT IN HONG KONG WAS NEGLIGIBLE.

THE MAJOR PROBLEM, WE HAVE BEEN ADVISED, IS THAT SWEDEN IS A LONG WAY FROM HONG KONG. FURTHERMORE, IT APPEARS THAT EVEN WHEN A SWEDISH COMPANY HAS VENTURED INTO THE FAR EAST, IT HAS MORE OFTEN THAN NOT STOPPED AT SINGAPORE,+ MR TSAO REMARKED.

AT PRESENT, SWEDEN'S INVOLVEMENT IN HONG KONG'S ECONOMY HAS BEEN LIMITED TO ONLY ESTABLISHING A NUMBER OF TRADING COMPANIES AND PURCHASING OFFICES, WITH RESPONSIBILITIES FOR DEVELOPING AND CONDUCTING BUSINESSES IN THE FAR EAST.

AMONG THE 24 COMPANIES THUS INVOLVED CAN BE FOUND MOST OF SWEDEN'S MAJOR INDUSTRIAL GROUPS.

HE OBSERVED THAT SWEDISH OVERSEAS INVESTMENT, ALTHOUGH SUBSTANTIAL, HAD BEEN MAINLY RESTRICTED TO HEAVY INDUSTRY.

+HOWEVER, WE ALSO SEE THAT SWEDEN POSSESSES A WEALTH OF SMALL TO MEDIUM SIZE COMPANIES MAKING SUPERBLY DESIGNED, TECHNICALLY ADVANCED PRODUCTS WHICH WOULD BE EMINENTLY SUITABLE FOR ECONOMIC PRODUCTION IN HONG KONG, AND THIS IS WHERE I BELIEVE OPPORTUNITIES MAY BE FOUND, HE NOTED.

MR TSAO BELIEVED THAT SWEDEN AND HONG KONG SHOULD, AND COULD, DEVELOP EFFECTIVE INDUSTRIAL CO-OPERATION BY HELPING EACH OTHER TO EXPAND THEIR ECONOMIES AND EMPLOYMENT OPPORTUNITIES THROUGH THE GENERATION OF A TWO-WAY FLOW OF PRODUCTS AND SERVICES.

AT THE SAME TIME, HE ADDED, HONG KONG COULD PROVIDE VITAL TRADING FACILITIES FOR SWEDEN WITH THE FAR EAST AND CHINA.

+WE HAVE COMMON AIMS WHICH CAN ONLY BE ADEQUATELY REALISED BY CLOSE CO-OPERATION AND A PROPER UNDERSTANDING OF EACH OTHER'S POTENTIAL.

+WE HOPE THE INDUSTRIAL PROMOTION OFFICE WE HAVE ESTABLISHED IN LONDON WILL PROVIDE A BRIDGE AND A LINK WITH HONG KONG FOR THOSE SWEDISH COMPANIES WISHING TO INVESTIGATE THE POTENTIAL FOR THE DEVELOPMENT OF THEIR BUSINESS IN THE FAR EAST,+ MR TSAO SAID.

HE IS IN STOCKHOLM TO CONDUCT A TWO-DAY SEMINAR AND DISCUSSIONS WITH INDIVIDUAL COMPANIES AFTER OPENING A HONG KONG INDUSTRIAL PROMOTION OFFICE IN STUTTGART, FEDERAL REPUBLIC OF GERMANY, ON OCTOBER 6.

HE HAD GIVEN TALKS AT TWO INDUSTRIAL INVESTMENT SEMINARS IN STUTTGART AND COLOGNE BEFORE GOING TO SWEDEN,

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