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Page No. 2 of 9 pages
Overflying
3.
The Canton Air Traffic Control gave a day's advance notice
to its Hong Kong counterpart of a month long series of aerial survey flights to be made by a civil helicopter for mapping areas of China in the immediate vicinity of the China/Hong Kong border. The proposed flying area extended to a depth of 10 kms. into Hong Kong air space. Representations to the NCNA resulted in an undertaking that the flights would not cross the border until
the matter had been properly discussed. Nevertheless, a few days later, a
helicopter made a number of limited incursions into Hong Kong air space to an approximate distance of 800 ms., during the course of survey flights. The matter was at once drawn again to the attention of the NCNA who, after enquiries, maintained that the border had not been crossed (though the helicopter's course had been verified by a number of competent observers). The flights have now ceased. There are no grounds for suspecting any sinister
intent.
Banking and Finance
The 13 local CPG owned or controlled banks have been given permission by Beijing to deal in Hong Kong's foreign exchange, stock and
bullion markets.
5.
The
The Bank of China is to be one of the three lead banks in a
syndicated loan of HK$617 m. needed to finance the construction by the China Cement Co. of the large new cement plant at Tap Shek Kok, the biggest
foreign investment in Hong Kong so far (see para 3, October 1979 report). agreement between the banks and the Company was signed during the month. China owns one-fifth of China Cement's equity. This is the first occasion on which the Bank of China has taken the joint lead in arranging a syndicated
loan.
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