TNAG-2478-FCO40-3608-Trade-relations-between-Hong-Kong--the-UK-and-other-countrie-1992 — Page 19

For information on

28 July 1992

RESTRICTED

HA3/21/7

NOTE FOR EXECUTIVE COUNCIL

HONG KONG IPM (MANPOWER) INTERNATIONAL LTD

716

XCRI(92)22 Copy No.

Mr

AM

Mr Man's

INTRODUCTION

This note informs Members that, with effect from the end of July 1992, Hong Kong IPM (Manpower) International Ltd (“the company") will suspend trading activities in Hong Kong and Toronto. The company will however continue to exist, albeit largely in a dormant state, to allow the Board of Directors until September 1994 to decide whether the company could resume operation.

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3017

BACKGROUND

2

The company was established on 26 September 1991 as a joint venture of the Hong Kong Government, the Hong Kong Institute of Personnel Management (HKIPM) and the Hongkong and Shanghai Banking Corporation Ltd (Hongkong Bank).

3

The aim of the company was to attract former residents to return to work in Hong Kong, so as to counter the outflow of professional and managerial personnel due to emigration. The proposal to establish the company was endorsed by this Council on 23 April 1991, after consideration of memorandum XCC(91)62 (copy at the Annex).

4

At its meeting on 12 July 1991, the Finance Committee of the Legislative Council approved a grant of $2 million, and a loan of $1 million from the Capital Investment Fund, as Government's contribution towards the company. Under the Agreement establishing the company, HKIPM undertook to contribute $750,000 (to be paid in 3 annual instalments of $250,000 each) and the Hongkong Bank $250,000.

Executive Council