TNAG-1245-FCO40-1559-Press-reports-on-the-future-of-Hong-Kong-1983 — Page 26

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1997 through an American's eyes: On 21 May, the SCMP carried an interview between HK-based writer, Warren Williams, and Richard Allen, former US National Security Adviser, in which Mr. Allen was asked whether the US was interested in the "so-called" 1997 problem. Mr. Alien replied that he did not think the US was as immediately and intensely interested in HK as were the British; the US had no vital interests at stake here and the country had some business interests. HK was for the US an entrepot and there were alternative entrepots in Asia - instancing Guam which was not very far from HK.

New NCNA head in HK: The SCMP reported on 20 May that the Beijing Evening News had said China's new top man in HK would be Mr. Xu Jiatun, until recently Communist Party chief in the eastern province of Jiangsu, and he would succeed Mr. Wang Kuang with the title of head of the HK bureau of the NCNA.

China to repay IMF loan_early: The SCMP Business News reported on 20 May that China would start to repay 450 million special drawing rights (SDRs) about US$553 million in loans from the IMF from 21 May, 10 months ahead of schedule, according to the NCNA. The decision reflected a turn for the better in China's foreign exchange reserve holdings, which stood at US$11.13 billion at the end of December, a 133 pc increase from the previous year, a spokesman added.

HK would wither: The editorial in the SCMP on 23 May said HK would swiftly wither if it were to be absorbed into the fabric of the mainland economy. Basically, HK thrived because the Government gave free rein to private enterprise with the minimum of controls and the assurance of stability and continuity; none could predict what would happen when that was removed. Somehow, local people had to be convinced that the future was good enough and dependable enough to bring back funds to invest in HK's industry, commerce, property and way of life. Only then would the dollar recover to its old levels and only then could the governments of Britain, HK and China be convinced that there was a good long-term future for the territory.

Shanghai opening up: The general manager of Shanghai Investment and Trust

Corporation, Mr. Hsu Bang Fai, said Shanghai had been granted increased autonomy in external trade, in the use of foreign investment and the transfer of technology. He also said Investment companies in the city were interested in investing in HK because they wanted

to understand more about conditions here and bring such experience back to Shanghai. Mr. Hsu even suggested that HK and Shanghai could work together to invest in other parts of the world, noting that this would contribute to HK's prosperity and stability. Meanwhile, the SCMP Business News reported that a Shanghai economic delegation, led by Mr. Zhang Cheng-zong, vice-chairman of the Shanghai committee of the CPPCC, was inviting local businessmen to invest in its industrial and economic projects; 1,000 projects would be put forward by Shanghai for economic and technical co-operation in the next three years and local businessmen were welcome to negotiate on some of the projects.

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