TNAG-1847-FCO40-2622-House-of-Commons-Select-Committee-on-Foreign-Affairs-enquiry-1989 — Page 99

FAC VISIT TO THE TRADE COMMISSION 18 APRIL 1989

NOT HANDED OVER

POSSIBLE QUESTIONS

Does the political environment in Hong Kong affect your commercial function?

1.

My

I don't have a political role of course but as you can imagine it is difficult in the circumstances to engage people in wholly commercial conversations. To that extent my commercial function is affected. However, I have no evidence one way or the other on whether actual business with Britain has been affected by the political situation. feeling is that business is business in Hong Kong and it will be conducted with anybody if price and the product are right. The fact is that British companies are doing better in value terms than before and many more British businesspeople are paying attention to the territory. We are losing market share and so are some other countries as China takes more of the market but I have no evidence that we have lost orders because of any political feeling towards Britain.

Because of the political feeling towards Britain are people ignoring it as a place in which to invest?

2.

<<

I have no evidence of that. I think Hong Kong companies decide on their overseas investment on purely commercial grounds. Some Hong Kong companies have established factories in Britain and that process is continuing. It is not a large number about six already and a few in the

ONE ANNOUNCED THIS MONTH pipeline but of course they are very welcome. Considerable purchases of equity and property have been made in Britain by Hong Kong companies in the last few years: over £1bn worth (for instance Quicksave, the Midland Bank and the Churchill Hotel).

3.

TANDARD CHARTERE

Are passports a factor?

In my experience most people who think about an investment in Britain do so for commercial reasons although they do want to know where they stand so far as settlement and citizenship are concerned.

4. Would more invest if they thought a passport could be available?

Some might invest anywhere overseas in exchange for a passport without residence requirements but generally it is not made that simple. Most countries require people to reside before a passport is made available. The UK is no different in this respect. The difference is that some other countries are actively looking for people to go there and live and become citizens, not necessarily as investors. People in Hong Kong know that these countries are looking for new citizens even though the obligations of residence and so on are similar to our own.

5.

But are we missing out?

Not according to our rules.

6. Should the rules be changed?

I think that is a question for Ministers.

A