CONFIDENTIAL
010022
MOLIAN 2084
5. THE FINANCIAL CRISIS OF THE CHAMBER HAS COME ABOUT VERY QUICKLY. HMG CONTRIBUTED PDS STG 20,000 TO HELP LAUNCH THE CHAMBER, AND JARDINES, SWIRES AND OTHER MAJOR COMPANIES ALSO CONTRIBUTED. SUBSTANTIALLY. I AM SURE NONE IMAGINED AT THAT STAGE THAT THE CHAMBER'S ALREADY QUITE MODEST PRESENCE WOULD NEED TO BE RETRACTED AND RETRENCHED THREE YEARS DOWN THE ROAD. THE CHAMBER IS ALSO INCREASING ITS SUBSCRIPTION BY 25 PER CENT. GIVEN THAT THIS IS ALREADY HIGH, THIS MAY WELL LEAD TO A LOSS OF MEMBERSHIP AMONG SOME OF THE SMALLER MEMBER COMPANIES.
6.
I WAS ASKED AT A COMMITTEE MEETING OF THE CHAMBER WHETHER HMG COULD CONTRIBUTE MORE AT THIS STAGE TO ITS RUNNING COSTS. I SAID THAT I WOULD FORWARD ANY FIRM PROPOSAL, BUT THAT IT WAS EXTREMELY UNLIKELY THAT WE COULD CONTRIBUTE TO RUNNING COSTS ON A REGULAR BASIS: A ONE OFF CONTRIBUTION MIGHT BE A LITTLE EASIER: BUT THAT THE CHAMBER WOULD APPRECIATE THAT HMG EXPECTED THE PRIVATE SECTOR TO MAKE THE RUNNING ON SUCH OCCASIONS. THIS REQUEST WAS NOT PURSUED, AND THE CURRENT PLANS TO MOVE AND RETRENCH WILL KEEP THE CHAMBER WITHIN ITS BUDGET.
7. ASSUMING THAT WE ARE NEITHER ABLE NOR WILLING TO PROVIDE THE CHAMBER WITH FINANCIAL SUPPORT, AND THAT NONE OF ITS WEALTHIER MEMBER COMPANIES ARE WILLING TO PROVIDE ADDITIONAL SUBSIDIES OR SUPPORT (AND I DOUBT MYSELF WHETHER THIS SOURCE HAS BEEN SUFFICIENTLY EXPLORED, SINCE ALL THE DECISIONS HAVE BEEN TAKEN SO QUICKLY), THE PROPOSED RETRENCHMENT SEEMS INEVITABLE. IN TERMS OF THE OVERALL MANIFESTATIONS OF BRITAIN'S STAKE IN HONG KONG, AND CONFIDENCE IN THE FUTURE PARTICULARLY FOR OUR COMMERCIAL PRESENCE, THIS CAN ONLY BE SEEN AS AN UNFORTUNATE DEVELOPMENT.
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