TNAG-2626-FCO40-3817-British-Trade-Commission-in-Hong-Kong-1992 — Page 22

CONFIDENT, AL

BUSINESS CONFIDENCE IN HONG KONG

1. I have a strong impression of a one issue town, the issue of the moment being debated around every dinner table in Hong

Kong. When I arrived, the agenda item was unfair practice by British companies, then it was the new Governor, now it is reactions to his constitutional proposals. The perspective is generally narrow. What I find particularly surprising in the

two weeks since I returned from London and China is the

absence of passion. Is it because most of the business people

I meet do not actually care very much? Of do they regard it essentially in business terms, ie in relation to their own company's activities? Or are they simply too busy making money throughout the day to give the longer term political issues much thought?

2. It has been said that business leaders are opposed to the

Governor's set of proposals, but opinions I have heard expressed vary widely. I sense that the majority of British businessmen acknowledge that it is not their future that is at stake, are content to leave the debate to the people of Hong

Kong, have considerable confidence in the Governor and expect

matters to be resolved in due course. Meanwhile, of course,

the business environment is as positive as any in the world:

local risks are modest by comparison with problems elsewhere.

Our advice to businessmen is unqualified: they should not be

deterred from pursuing business here or over the border by

press reports.

3. So far as Chinese and locally established companies are

concerned, one has to distinguish between businessmen with

clear political ambitions and those who are caught in local

There are wide differences on substance and

cross-currents.

tactics.

HKCD 12.0/1