TNAG-1246-FCO40-1560-Press-reports-on-the-future-of-Hong-Kong-1983 — Page 145

CONFIDENTIAL

Mr. Wu said during his 30-minute meeting with the Premier, approval had been given for Hopewell Holdings (Mr. Wu's company) to redevelop Shenzhen railway station. The $330 million project would commence in March and take 18 months to complete.

Also visiting China was a HK-TVB delegation headed by general manager, Mr. Robert Chan, which met the vice-chairman of the NPC, Mr. Liao Chengzhi, on 17 December. During the meeting, Mr. Liao reiterated the call on local residents to set their hearts at ease as HK's prosperity would not be affected on reversion of sovereignty.

4.

BEIJING-FUNDED FIRMS BOLSTER CONFIDENCE:

On December 13, the Government granted by private treaty for 75 years an area of 13 000 sq. metres of foreshore and seabed in Kennedy Town to China Merchants Steam Navigation Co. for construction of a cargo handling pier and godown. A Government spokesman said the premium at $30 million represented the full market value of the site based on the development proposed. He said the new pier would serve rapidly increasing trade between HK and China. The deputy manager of CMSN, Mr. S.S. Chu, said his company would spend $200 million to develop the site in two years. The investment underlined the company's confidence in HK's future. He said the new pier would also serve the logistics base for South China Sea oil exploitation in Chik Wan, northwest of HK. Wen Wei Po and the Express viewed the massive investment as another example to show the faith of Beijing-based organisations in HK's long term development.

The following day, the general manager of the HK Branch of the Bank of China, Mr. Jiang Wenqui, met the president of the CMA, Mr. Ngai Shiu-kit, the hon. president of the Federation of HK Industries, Mr. T.K. Ann, and its chairman, Mr. H.C. Hung. After the meeting, Mr. Jiang said the group of Beijing-funded banks in HK was prepared to do more to help local industry. The HK Economic Journal quoted a spokesman for the Bank of China saying that his bank was drawing up a plan to promote HK's economic development. including help to industrial and property sectors. A CMA spokesman said they had discussed the difficulties facing industry, but neither the CMA nor the FHKI had made any specific proposals to the Bank of China. Ta Kung Pao described the meeting in an editorial as a good start towards closer co-operation between the banking and industrial sectors. The paper, together with the HK Commercial Daily, the HK Daily News and the Express, called on the Government to give more positive and vigorous support to industry which remained the mainstay of HK's economy. A HK Economic Journal columnist said the plan to help industry had greater political than economic significance. He said it would do the economy little good and was another example to show that China had overdone the question of 1997. However, the left-wing Commercial Daily and Tin Fung Yat Po said the meeting, together with China Merchants Steam Navigation Co's pier development, showed China was taking concrete steps to maintain HK's prosperity and stability. A senior Government official said he welcomed, in principle, the intention of Beijing-funded banks to offer positive help to local industry.

CONFIDENTIAL