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Pskord Glenorthur -"" M. Cuillmore
NW
SECRETARY OF STATE FOR TRADE & INDUSTRY
Mr Meceren.
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1.
Investment in Hong Kong
You may recall that over breakfast on 16 December
we discussed British investment in Hong Kong. We agreed that we should continue to encourage British industry to focus on the opportunities in Hong Kong as the jewel in the crown of Chinese enterprise post
1997. You suggested that the level of British investment
might be flagging and compared unfavourably with that of such countries as West Germany and Italy.
2. I am glad to say that the figures show clearly that British investment in the manufacturing sector in Hong Kong has been growing steadily in the past decade. The level of our investment is significantly higher than that of West Germany, and incomparably higher than that of Italy. I enclose some relevant extracts from the Hong Kong Government's Survey of Overseas Investment in Hong Kong Manufacturing Industries (1988). Your officials will be able to elaborate
on these.
3. That said, I am sure that we must continue our
efforts to promote the right sort of attitude towards. investment in Hong Kong. Simon Glenarthur's speech at Wilton Park in September on "China's Open Door" was in part designed to underline the vital role which
Hong Kong is playing in China's economic development. It was earlier agreed that it would be helpful if influential figures unconnected with the Government
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