TNAG-1245-FCO40-1559-Press-reports-on-the-future-of-Hong-Kong-1983 — Page 29

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Investment in China: A China News Service despatch said the Chinese Finance Ministry had announced tax concessions for foreign investments in China. One concession was that compatriots from HK and Macau, as well as overseas Chinese, who entered into joint ventures in the country, would be exempted from profits tax in the first six years. A 20 - 40 pc tax reduction would be given to profits made on investments in agriculture and forestry in the subsequent period of 10 to 15 years after the tax-free concession in the first six years. Another concession was that foreign investors who re-invest the profits they make in China would be given a 20 40 pc refund of the amount of tax paid.

Sino-British ties: China's new ambassador to Britain, Mr. Chen Xiyuan, in a long-distance telephone interview with Wen Wei Po, said there would be better prospects for Sino-British relations if the two sides worked hard towards the common goal. He said China attached weight to developing ties with Britain, citing as examples the award of an oil exploration contract to a British consortium and the visit to Britain of China's External Trade Minister, Madam Chen Muhua. On the HK issue, he said China had already made clear its stance. The question would be resolved through negotiations.

CPPCC delegate: In an interview with the China News Service, a HK CPPCC delegate, Mao Yun-sun, a retired CU history professor, said he was honoured to be elected to the CPPCC and would try to reflect the views of HK compatriots to China. He said he would speak on two subjects at the CPPCC: the first would be on development of the education and legal systems; the second would be about cultural exchanges between HK and China. He said "regain sovereignty, maintain prosperity and HK people to govern HK" were the laid down guidelines. Residents in HK should be more pragmatic and work for the prosperity of HK.

Reunification of China: An AFP despatch quoted President Chiang Ching-kuo of Taiwan as saying that he did not believe China's reclaiming of HK would serve as a model for eventual reunification of China. He said HK residents had been unnerved by mere reports that the Chinese communists might gain control. The price of real estate had plummeted and a massive flight of capital had occurred.

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