XN000022-1984-10-16 — Page 23

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TUESDAY, OCTOBER 16, 1984

HOWEVER, HE SUGGESTED THAT PURELY POLITICAL CHANGES SHOULD BE KEPT TO THE MINIMUM IN 1997 AS THESE WOULD DISTURB INVESTORS' CONFIDENCE.

HE ALSO PREDICTED THAT AS HONG KONG MOVED CLOSER TO 1997, THE MANAGEMENT WOULD BECOME MORE UNCERTAIN ABOUT ITS OWN POSITION AND THIS UNCERTAINTY WOULD AFFECT ITS PERFORMANCE AND CONTINUAL LOYALTY.

+TO COUNTER THIS, MANAGEMENT SHOULD BE CONSULTED AND ADEQUATELY INFORMED THROUGHOUT THE 13 YEARS' TRANSITIONAL PERIOD.

+ BELIEVED THAT THIS CAN BE MOST EFFECTIVELY ACHIEVED BY INCLUDING 'HONG KONG INCORPORATED'S' MANAGEMENT IN THE MEMBERSHIP OF THE JOINT LIAISON GROUP, HE SAID.

+AS IN THE CASE OF MANAGEMENT, THE LABOUR FORCE SHOULD ALSU BE ADEQUATELY INFORMED THROUGHOUT THE TRANSITIONAL PERIOD.

+AN UNSETTLED LABOUR FORCE COULD BE HIGHLY DISRUPTIVE TO PRODUCTIVITY AND IN TURN WILL AFFECT INVESTORS' CONFIDENCE IN 'HONG KONG INCORPORATED', HE ADDED.

MR TONG SAID IN THE FINAL ANALYSIS, INVESTORS WERE MOST CONCERNED WITH THE RETURN ON THE IR INVESTMENT AND IF HONG KONG INCORPORATED' CONTINUED TO BE A SUCCESS STORY, ITS MANAGEMENT AND LABOUR FORCE AL IKE SHOULD NOT BE UNDULY CONCERNED ABOUT THE IR POSITION.

+HOWEVER, IT WOULD BE WHOLLY UNREALISTIC TO EXPECT NO RETRENCHMENT IN A BUSINESS IF THE RESULTS ARE SIGNIFICANTLY LESS THAN DESIRABLE.

+OVERALL, I BELIEVE THAT THE INVESTORS SHOULD REMAIN CONFIDENT IN HONG KONG INCORPORATED',+ HE SAID.

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