TNAG-1048-FCO40-1298-Local-Intelligence-Committee-assessment-of-the-political-sit-1982 — Page 25

FCO40 Hong Kong Department Records 聯邦事務部香港部檔案 All

G.F. 316

SECRET 高度機密

Page No. 2 of 9 pages

Banking

3.

The Vice Chairman of the Board of the Bank of China

visited Hong Kong in mid July to see Hong Kong's economic

situation for himself and to examine Chinese investment in

Hong Kong and vice versa.

4.

One of the four communist banks incorporated in Hong

Kong, the Nan Yang Commercial Bank, is to diversify its activities

by organising tours in China for Hong Kong residents: travel bureaus are to be opened in all the bank's branches. It is also to open a banking branch in the Shenzhen SEZ, the first Hong Kong bank to do so (although the Hongkong and Shanghai Bank and the Banque Nationale de Paris have stated an interest in following suit and the Chartered Bank is also interested).

Commerce

5.

A senior manager of the Knitwear and Cotton Goods Department of the China National Textiles Import & Export Corporation has made known privately various proposals connected with China's textile export policy. It has been decided to appoint more distributing agencies in Hong Kong so as to eliminate the less efficient ones now in business; to control production in China so as to avoid excessive quantities of textiles being offered for sale in Hong Kong; and to aim to export directly

from China rather than through Hong Kong.

6.

The Provinces of Guangdong and Fujian have now gained complete autonomy in handling their foreign trade through Hong Kong China Resources Co. formally transferred remaining responsibility to the Guangdong Enterprises Company at the end of June 1981 and a fortnight later it ceased to trade on behalf of Fujian.

7.

Summer sales have been poor for the various Chinese department stores of Hong Kong, partly as a result of the indifferent quality, the old fashioned style and the uncompetitive design of their wares.

SECRET 高度機密

/ para 8.

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