TNAG-2016-FCO40-2871-Relations-between-Hong-Kong-and-Japan-1990 — Page 50

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Dongy Mr Bowns виж

The Davies, FG)

Mr Paul, (hi)

I should have the

me for Tokyo

the relegrams

mih

suggest you write to it K, with

to your conversation

refrensce

The guil of these Velegrums

M

particular

Mr McLaren

, ging

The

hi

25%

HK/ Jupon Jil

pa R

(AO)

F. Me Cummins, FED

( For Mr McLean's briefing

back)

RM 20/10

FROM: A R Paul

Hong Kong Department

DATE: 25 October 1990

cc: Mr Burns

Mr Davies, FED

HKB 020/2

1990

Misy Marie Ploral

20/10

JAPANESE INVESTMENT IN HONG KONG

1.

You asked for chapter and verse on Japanese investment

in Hong Kong, in the light of Mr Keswick's comment that

levels of Japanese investment in the territory were not impressive and that the Japanese were taking a very cautious

attitude towards Hong Kong's future.

2. I attach the advice we have received from Hong Kong and

Toyko.

3.

It

Neither Hong Kong or Tokyo bear out the Keswick thesis.

Indeed, all the evidence points in the contrary direction.

Japanese financial institutions (which account for more than half the total assets of Hong Kong's banking sector) still appear to be very bullish about investment in Hong Kong. is however a fact that given the weak performance of the

Japanese Stock Market and uncertainties arising from the

Gulf Crisis, Japanese banks and investment houses are

pulling in their horns worldwide.

some impact on Hong Kong.

This will inevitably have

Roseline Manda

MADAGZ/1

for

A R Paul