TNAG-1871-FCO40-2659-Relations-between-Hong-Kong-and-China-1989 — Page 93

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II.

13.

Increasing the flow of Foreign Investment into China.

This meeting will take place for 3/4 days in September or

October 1989.

14. During the meeting on China and the World in the Nineties, the participants had the honour of meetings with Premier Li Peng, General Secretary Zhao Ziyang and with Mr. Deng Xiaoping. All three supreme leaders expressed the view that, although important new initiatives and improvements are in progress, China must do better in attracting foreign investment to complement its modernisation efforts.

15.

In October 1988, the decision was taken at the highest level, that this issue should be the focus of the second private meeting.

16

The meeting will provide an opportunity, after careful preparation, to identify the obstacles which inhibit foreign investment in China, as seen by a group of international business and banking leaders and by the Chinese themselves. The conclusions and suggestions will then be presented to the leadership. The meeting will also help to improve understanding in the international business community of Chinese concerns, priorities and potential.

17. The international group of 10/12 businessmen, bankers and venture capitalists will be carefully selected to include some with experience of major investments in China and others who are already involved on a smaller scale but who are considering larger investments. One or two participants will come from developing countries with relevant experience.

18. The international side will present practical examples of both good and bad experiences with investment in China. They will identify specific obstacles, difficulties and causes of uncertainty. They will also suggest improvements.

19. It is planned that there will be about 15 senior Chinese participants from the responsible Ministries and State Commissions, such as the Ministries of Foreign Trade and of Finance, the State Planning Commission, the Economic Restructuring Commission, the Bank of China, CITIC and the Office of the State Council for Special Economic Zones.