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023624
MDLIAN 9242
GLAXO, AMEC, SWIRE, ROLLS ROYCE - ARE SEEING A LARGE SECTION OF THEIR GLOBAL GROWTH IN THE AREA OF WHICH HONG KONG IS THE CENTRE. BY AND LARGE THEIR LOCAL REPRESENTATIVES EXPECT TO BE HERE BEYOND 1997.
9.
UNDERPINNING OUR TRADE IS A SMALL ARMY OF CONSULTANTS AND SPECIALISTS IN SERVICE SECTORS STRONGEST PERHAPS IN ENGINEERING AND AVIATION BUT OF GROWING IMPORTANCE ON THE RETAIL SIDE. THE WEAKNESS, UNTIL THIS YEAR, HAS BEEN THE BRITISH BANKING SYSTEM, WITH THE HONOURABLE EXCEPTION OF STANDARD CHARTERED AND CERTAIN MERCHANT BANKERS, PRINCIPALLY SCHRODERS. THE MIDLAND ACQUISITION CHANGES ALL THAT. THE LARGEST BRITISH BANK NOW TOWERS OVER HONG KONG, WITH ITS MERCHANT BANKING ARM CLAIMING TO BE THE LARGEST IN THE WORLD. WE SHOULD WORK WITH THEM, IN HONG KONG, IN CHINA AND WORLD-WIDE.
BRITISH AIMS
10. THIS IS ARGUABLY THE EASIEST AND PERHAPS THE MOST SOPHISTICATED PLACE IN THE WORLD IN WHICH TO DO BUSINESS. BRITISH COMPANIES THAT FLOURISH HERE CAN TAKE ON THE COMPETITION ANYWHERE AND THEY WIN ON REPUTATION, RELIABILITY AND PRICE.
11. OUR NATIONAL INTEREST, I SUGGEST, IS IDENTICAL WITH THAT OF HONG KONG AND OF OUR MAJOR TRADING RIVALS, NAMELY TO KEEP HONG KONG A FAIR AND FREE MARKET. THE NEW GOVERNOR'S INAUGURAL SPEECH WAS WELCOMED BY ALL SECTIONS OF THE BUSINESS COMMUNITY. HOW WE ORCHESTRATE SUCH A POLICY WILL REQUIRE FURTHER DISCUSSION BUT I HAVE MADE A SET OF PROPOSALS THAT WILL, I BELIEVE, WIN THE SUPPORT OF THE MAJOR BRITISH INTERESTS. THE BTC ITSELF SHOULD BE EFFICIENT AND DISCREET. OUR PUBLIC AIM SHOULD BE A GREATLY STRENGTHENED CHAMBER OF COMMERCE, ABLE TO DEFEND THE WIDER COMMERCIAL INTERESTS WHILE IN A POSITION TO PROMOTE PURELY BRITISH CONCERNS IN THE RIGHT QUARTER.
12.
THE IMMEDIATE THREAT TO BRITISH TRADE IS THE STRONG POUND, APPRECIATING 10 PERCENT AGAINST THE HKD IN RECENT MONTHS. OTHER HANDICAPS INCLUDE THE IMPACT OF RECESSION IN THE UK WEAKENING COMPANIES' WILLINGNESS TO TAKE RISKS IN WHAT IS A HIGH-COST MARKET, BUT ABOVE ALL THE UK SUFFERS FROM WIDESPREAD MISUNDERSTANDING OF THE BUSINESS POSSIBILITIES HERE, PERHAPS A RESULT OF THE OVER-POLITICISATION BY BRITISH MEDIA OF PROBLEMS WITH CHINA AND THE IMPACT OF 1997. THE SECRETARY OF STATE HIGHLIGHTED THIS PROBLEM WHEN BRIEFING ME, AND A PROGRAMME OF HIGH-LEVEL SEMINARS IS TO BE ORGANISED IN THE UK TO PUT THE HONG
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