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Economic Prospects
On January 4, a number of papers published interviews with prominent residents on the economic outlook for Hong Kong.
Optimism was expressed for the various sectors including the textile industry despite export quota cuts by the EEC countries.
A continued boom in the construction industry was predicted and the HONG KONG ECONOMIC JOURNAL quoted Mr. Woo Hon-fai the Vice-chairman of the Real Estate Developers Association as saying that confidence in the industry was inspired by good Anglo-Chinese relations and China's increased investment in Hong Kong.
Shipping
The TA KUNG PAO (January 5) published an interview with Mr. K.L. Lee, Director of the Prompt Shipping Corporation Ltd. and representative of Holland America Cruises (HAC) who said that the shipping business in China was on the increase and that was the reason why so many Hong Kong shipping merchants "who never had any business with China before" were currently developing their business with China.
George Lauriat wrote in the FAR EASTERN ECONOMIC REVIEW (February 10) that "The People's Republic of China (PRC) ocean-going fleet, at the end of 1977, consisted of approximately 365 ships of 3,626,242 grt. Added to this flag fleet are another 122 ships of 913,157 grt flying flags of convenience, predominatly Panamanian, of PRC-controlled companies registered in Hongkong and Macau" and added "This places China around 15th in the world, second to Japan in Asia, just ahead of Singapore."
He commented that China's "maritime bureaucracy is well represented in the colony" since Hong Kong is important to the PRC both as a trans-shipment port and a go-between for China's entry into the capitalistic world of international shipping.
He explained that the China Merchant Steam Navigation Company acted as the Hong Kong agent for the State-owned China Ocean Shipping Corporation (COSCO) and co-ordinated the activities of the Peking-controlled, Hong Kong and Macau offshore shipping companies and other fleet support services. The Far East Trading Company (FRANECO), the other main PRC representative, acted as a forwarder of freight and consolidated cargos; it booked space and arranged onward transportation.
Mr. Lauriat said that Hong Kong's ability to absorb excess tonnage was exceedingly valuable to China as “China can send its tonnage there (HK) to paint and refit without having to tie up valuable port space at home."
Halcyon Liew, also wrote in the same magazine saying cruise operators were "showing growing interest in including Chinese ports on their itineraries as more and more ships are being allowed to dock in Shanghai” and added when HAC's "Prinsendam" first went to Shanghai last October, it stayed in Hong Kong for two nights.
Possible AirLinks
The STAR (January 4) said "China is expected to soon introduce a scheduled passenger service link to Hongkong with Canton and Shanghai" and added that it would be the start of China's plan to eventually establish a fully-fledged international airline.
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