TNAG-1268-FCO40-1617-China-s-economic-relationship-with-Hong-Kong-Shenzhen-econom-1983 — Page 110

FLAG A

attached

Mr Gi

Giffard

PS/Lord Belstead

CONFIDENTIAL

MKK 09111

DESK

cc: Mr Thomson, FED

Mr Walker, Research

INDEX...

Mr Donald o.r.

13 MAY 1983

14

Muste

$

|CH 2015/

"115

(28

See HKK

02613(25) огов

HONG KONG CHINA ECONOMIC RELATIONS: EVERBRIGHT (GUANGDA) INDUSTRIAL CORPORATION, HONG KONG

(1984)

1. In paragraph 3 of his letter of 6 May to Mr Holmes, Mr Coles records what Sir Y K Pao told the Prime Minister about a new Chinese company in Hong Kong called Everbright. The following is some background information provided by Peking, Hong Kong and the media.

2.

Everbright is the first wholly Chinese non-governmental corporation to have its headquarters in Hong Kong.

It was inaugurated on 11 April. A banquet to mark its establishment was attended by Ambassadors from several industrialised countries, including Sir P Cradock.

3. The Corporation's Chairman is Wang Guang-ying, a former Deputy Mayor of Tianjin and brother-in-law of a former President, Liu Shaoqui. Wang has described the Corporation's chief tasks as absorbing foreign funds, introducing advanced technology and equipment, engaging in capital investment abroad and cooperation with foreign firms in joint ventures at home and abroad, in order to step up the pace of Chinese economic development, promote structural reform of the Chinese economy and contribute to Hong Kong's prosperity. The Embassy in Peking have commented that while this is no doubt a logical part of China's drive to import technology, it is also likely, given Wang's connections, that the Corporation will report on the economic and political situation in Hong Kong, and may exercise some influence in Peking.

4. Wang and a group of officials were due to arrive in Hong Kong in late April to open the Corporation's headquarters. In due course the Corporation is likely to set up other offices in major industrial countries as well as in China.

5. According to the Americans in Hong Kong (please protect) there is also a connection between Dr Henry Kissinger and Everbright. Dr Kissinger visited China last year to initiate discussions about his consultancy company (Henry Kissinger and Associates) participating in priority development projects in China, particularly where the transfer of advanced technology was concerned. Everbright would provide the main channel for priority development projects involving Dr Kissinger's participation.

CONFIDENTIAL

/6.