RESTRICTED
RESTRICTED
FM BTC HONG KONG
TO PRIORITY FCO
TELNO 210
OF 151038Z JULY 92
AND TO PRIORITY DTI, PEKING
HKD 0226/14
(37)
023624
MDLIAN 9242
por
ল
17/4
BUSINESS IN HONG KONG
SUMMARY
1.
SCENE-SETTER FOR THE VISIT OF THE MINISTER OF STATE AND TALKS IN THE FCO ON THE NEW CONSULATE-GENERAL. A BUOYANT MOOD IN HONG KONG IS UNDERPINNED BY GROWTH ACROSS THE REGION AND ESPECIALLY OVER THE BORDER WITH CHINA. CONTINUITY THE KEY, THOUGH FEW WOULD BE SURPRISED BY UNEXPECTED REVERSALS. LONG-TERM PLANNING THE NORM AND ANY BUSINESS WORTH ITS SALT KNOWS WHERE IT IS GOING '1997 HAS ALREADY HAPPENED' IS A POPULAR CATCH-PHRASE. ROLE FOR THE BRITISH COUNCIL.
DETAIL
2.
IMPORTANT
IT WOULD BE DIFFICULT TO FIND A PESSIMISTIC BUSINESSMAN IN HONG KONG. THE TERRITORY HUMS WITH ACTIVITY AND DECISIONS ARE TAKEN RAPIDLY. THE SITUATION CONTAINS THE CLASSIC INGREDIENT FOR PROFIT, NAMELY PREDICTABILITY. THERE IS A WIDESPREAD CONVICTION I THE BUSINESS COMMUNITY THAT THE MAJOR DECISIONS HAVE BEEN TAKEN AND THAT THEY CAN PLAN WITH CONFIDENCE. THEY HAVE AN ASSET THAT IS UNIQUE IN THE WORLD, A FIRM, ORDERLY BASE FORM WHICH TO ATTACK THE LARGEST CONSUMER MARKET IN THE WORLD.
3. ALL BUSINESS DECISIONS REQUIRE AN ASSESSMENT OF RISK. THE DANGERS HERE ARE REGARDED AS MANAGEABLE IN RELATION TO THE ANTICIPATED PROFITS. THE TIDE OF INVESTMENT INTO CHINA IS SWELLING, AS EVIDENCED BY THE PARTICIPATION OF TWO GIANTS OF THE LOCAL SCENE GORDON WU AND LI KA SHING IN CHINA VENTURES. AND THE CHINESE ECONOMY IS INTERGRATING INTO THE HONG KONG MARKET, NOT ONLY THROUGH INVESTMENT IN LAND BUT IN ACTIVE PARTNERSHIPS IN VIRTUALLY ALL THE HONG KONG INFRASTRUCTURE PROJECTS: AND THIS WEEK WITH THE PURCHASE FROM THE HONGKONG BANK OF 10 PERCENT OF
CATHAY PACIFIC SHARES.
THE PROBLEMS
THAT IS NOT TO SAY THERE ARE NOT CONCERNS. I WOULD LIST THESE, IN ORDER OF PRIORITY AS
4.
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