GS LAZQ
CONFIDENTIAL
CALL ON SECRETARY OF STATE BY MESSRS LI KA-SHING AND SIMON MURRAY:
11.30 ON 29 OCTOBER.
Background
(a) General
1.
Li is one of Hong Kong's wealthiest and most prominent businessmen. From his "flagship" company Cheung Kong (Holdings) Ltd (mainly a property development firm) he has launched several
takeovers of more established companies most recently Hutchison Whampoa Ltd (a property and trading company) and Hong Kong Electric
(one of Hong Kong's major utilities). Hutchison was rescued from
near-collapse during the 1970's by an Australian, Mr Bill Wyllie, whom Li recently replaced as Managing Director with Murray, his own choice.
2.
Li
reputedly made his first fortune in the late 1960's by buying up cheap property and land in Hong Kong in the wake of the disturbances of 1966-7. He is one of the more potent symbols of Hong Kong's continuing economic dynamism.
This dynamism is currently reflected also in the continued ascent of the Hong Kong Stock Exchange Index, now hovering near 2300. This is the highest point that the index has ever reached and three times its level during the jittery days of September 1983.
3.
Li does not play any formal part in Hong Kong's public life, but his wealth and position nonetheless give him considerable
He maintains good relations with Peking, but is essentially his own man in his business dealings.
influence.
(b) Insider Dealing Tribunal
4. An independent Tribunal appointed by the Governor recently found Li and four fellow directors of Cheung Kong Holdings culpable of insider trading in 1984 share transaction on the Hong Kong Stock Market. All five directors applied to the Hong Kong High Court for a judicial review of the Tribunal's findings. The Court gave its
CONFIDENTIAL
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