TNAG-1482-FCO40-2036-Economic-and-commercial-value-of-Hong-Kong-to-the-UK-1986 — Page 81

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CHRIS FRASER

JIMMY MCGREGOR, HONG KONG GENERAL CHAMBER OF COMMERCE 9/5/86

FURTHER TO MY RECENT TLX, I HV NOW TO ADVISE U AS FOLLOWS RE THE COMPETITIVE POSITION OF VARIOUS BRITISH AUTHORITIES IN THE HK MARKET FOR HK INVESTMENT INTO THEIR AREAS. I AM COMMENTING WITH THE BACKGROUND OF OVER 30 YEARS OF EXPERIENCE IN THE FIELD OF INDUSTRIAL INVESTMENT PROMOTION N GENERAL BUSINESS PROMOTION FOR BOTH THE HK GOVT N THE HKGCC. AS U KNOW, I WAS RESPONSIBLE FOR MANY YEARS FOR THE HK GOVT PROGRAMME IN THIS FIELD NI SLD SAY THAT WE WERE SUCCESSFUL OVER A LONG PERIOD OF YEARS.

IT IS UNDENIABLE THAT HK INVESTORS HV ALWAYS LOOKED BEYOND HK TO OTHER AREAS WHERE LUCRATIVE

INVESTMENT MAY BE PLACED EITHER

IN REAL ESTATE OR TRADE N INDUSTRY RELATED INFRASTRUCTURE N OPERATIONS. HK IS PROBABLY THE THIRD LARGEST FOREIGN INVESTOR 'IN SOUTHEAST ASIA AFTER USA N JAPAN. OUR INVESTMENT COVERS A

WIDE FIELD N REPRESENTS MANY BILLIONS OF USD. IT IS HARDLY SURPRISING THEREFORE THAT COUNTRIES LOOKING FOR INVESTMENT IN THE CREATION OF INFRASTRUCTURE N JOBS HAVE INCREASINGLY LOOKED TO HK. DURING THE LAST THREE YEARS ALONE THIS CHAMBER HAS RECEIVED VISITS FROM OVER 50 FOREIGN INVESTMENT PROMOTION AGENCIES MOST OF THEM PRESENTING INFO TO POTENTIAL INVESTORS AT SEMINARS N CONFERENCES ALSO THRU PRIVATE VISITS TO POTENTIAL INVESTMENT COS. NEDC IS WELL AWARE OF THIS EFFORT N WAS THE FIRST

UK AGENCY TO SET UP REGULAR VISITS N SUBSEQUENTLY PART TIME REPRESENTATION. IRELAND, SEVERAL US STATES, AUSTRALIAN STATES, CANADIAN PROVINCES N A NO. OF OTHER COUNTRIES HV PERMANENT REPRESENTATIVES IN HK STRONGLY PROMOTING THEIR INTEREST. DURING RECENT YEARS CANADA N AUSTRALIA IN PARTICULAR HV DEVELOPED WHAT THEY CALL BUSINESS MIGRATION PROGRAMMES WHICH OFFER POTENTIAL INVESTORS THE OPPORTUNITY OF INVESTING N SECURING ENTRY TO THE COUNTRY CONCERNED THRU ARRANGEMENTS WHICH ARE INCREASINGLY MODIFIED TO RECOGNISE THE NEED FOR THE HK PARTY TO CONTINUE THE OPERATION OF BUSINESS IN HK WHILST AT THE SAME TIME INVESTING IN PRODUCTION CAPACITY ABROAD N QUALIFYING FOR FOREIGN CITIZENSHIP. THE BRITISH AUTHORITIES MUST OF COURSE BE WELL AWARE OF THESE PROGRAMMES WHICH ARE AS FAR AS I AM AWARE ATTRACTING CONSIDERABLE INTEREST N APPLICATIONS.

I FEEL THAT BRITAIN SLD BE IN A POSITION TO DEVELOP N PROMOTE SIMILAR PROGRAMMES. EVEN TAKING INTO CONSIDERATION THE PRESENT CONSTITUTIONAL CHANGES GOING ON IN HK N THE SENSITIVITY OF ANY OVERT ATTEMPT TO LINK IMMIGRATION WITH INVESTMENT, IT SLD BE POSSIBLE FOR BRITAIN TO ESTABLISH A CLEAR POLICY TOWARDS BUSINESS MIGRATION WITH PROGRAMMES WHICH WLD APPLY TO MANY COUNTRIES N NOT ONLY TO HK. SUCH A PROGRAMME WLD SET OUT LEVELS OF INVESTMENT WHICH WLD SECURE ENTRY INTO THE UK OF A FAMILY N ALSO SET OUT THE CONDITIONS UNDER WHICH THE FAMILY CLD CONTINUE TO DO BUSINESS IN THE ORIGINAL COUNTRY. SUCH A PROGRAMME CLD BE COMPETITIVE WITH THE AUSTRALIAN N CANADIAN BUSINESS MIGRATION SCHEMES.

AS THINGS STAND AT PRESENT BOTH AUSTRALIA N CANADA ARE ABLE TO OFFER BETTER DEFINED ARRANGEMENTS THAN BRITAIN N I SUGGEST TO U THAT THIS IS A MATTER WHICH SLD BE ADDRESSED AS SOON AS POSSIBLE. I HOPE THESE VIEWS ARE OF INTEREST TO V.

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