TNAG-1245-FCO40-1559-Press-reports-on-the-future-of-Hong-Kong-1983 — Page 66

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Return of local executives: In a business editorial on 16 May, the SCMP said one of the best portents the paper had reported for a long time was that many local executives who had left for jobs abroad were returning to HK. The reverse brain drain had a double effect, both good for HK's immediate and long-term future: 1. it provided a needed managerial pool of skilled, experienced people who could keep HK the thriving, innovative place it was; 2. it provided a similar reserve of trained people able to be sent back out by HK companies wishing to expand and diversify abroad.

Foreign banks to leave HK?: The Korea Economic Daily says some major foreign commercial banks were planning to shift Asian operations from HK to South Korea because of uncertainty over 1997; one example was a plan by Citibank to build a 15-storey HQ in Seoul where it had already bought a site. Chase Manhattan was known to have a similar plan. Citibank had a branch office in Seoul and another in Pusan, both in rented space. Local reports in Seoul said both Taiwan and Singapore were wooing major banks to move there, but Seoul was said to be preferred because South Korea offered a greater market for foreign capital. South Korea had previously announced ambitious plans to develop the southern island of Cheju into a “second Hong Kong" to supplant the territory's role after the lease expired.

HK men jailed in China: The SCMP and the HK Standard reported on 16 May that three HK people had been jailed in China on charges of spying. One was the former editor of the New Evening Post, Mr. Lo Cheng-hsun, 62, who was convicted of spying for the US. The others were Mr. Jian Zhijun, a teacher, and Mr. Lin Ying-biao, a geological worker, who were accused of spying for Taiwan (they got 15 and 14 years respectively). Mr. Lo was also deprived of his political rights in addition to a 10 years prison sentence. He was a member of the Guangdong provincial committee of the CPPCC and had been "most active" in united front work in HK. The SCMP reported that Mr. Lo had a house in the UK where his son was studying. The paper also reported that he had made a fortune out of selling Chinese artifacts.

Shanghai economic delegation: The China Daily on 13 May reported a Shanghai economic delegation would visit HK later this month to foster ties with the region. It would be headed by Mr. Zhang Chengzong, vice-chairman of the Chinese People's Political Consultative Conference's Shanghai sub-committee. The report said Mr. Liu Jingji, chairman of the Shanghai branch of the China International Trust and Investment Corporation, would take the opportunity to hold discussions with his HK-based board of directors on how to fully tap Shanghai's potential in foreign trade and to advocate new co-operation with HK. Mr. Liu would introduce to HK businessmen some of the technical and co-operation items. Shanghai intended to import in the near future. Mr. Liu said his company would expand its business from foreign trade to joint ventures and compensation trade; it was also considering the possibility of establishing a branch in HK. He said, when necessary, his company would help raise the competitiveness of Shanghai factories' export products through importing advanced technology and equipment for them.

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