TNAG-2626-FCO40-3817-British-Trade-Commission-in-Hong-Kong-1992 — Page 23

4.

This tension was evident at a dinner I attended

yes erday evening hosted by Inchcape and including Vincent Lo and John Gray, Chairman designate of the Hongkong Bank.

Highlights from the evening were

5.

(a)

Inchcape's insistence that they take no part in political issues, have no views and intended to continue highly profitable business in Hong Kong and

China;

(b)

(I

Vincent Lo took the opportunity to whisper in my ear that British trade would suffer heavily from the current problems and he wondered whether

there would be a role for the BTC in future years.

was particularly struck by this remark since it was the only occasion on which anyone in recent weeks had suggested that fall-out from constitutional problems would effect British trade). He was on the defensive

for much of the evening and his performance was unimpressive;

(c)

John Gray gave a balanced analysis of the bank' s

dilemma. problems. Staff and customers alike were

strongly behind the Governor: on the other hand, senior management were receiving threats from Peking.

He was not sure where the bank's interests actually

lay.

On two recent occasions Mr Purves has expressed his

unhappiness in strong terms, stressing that he

was not a politician but a businessman and simply thinking

aloud.

6.

There has been much discussion about the extent

to which the stock exchange index is a reliable thermometer.

Evidently there are a variety of reasons for current

optimism, notably the successful outcome of the PNC, buoyant

prospects for trade with China and the strength of the dollar.

The underlying health of the Hong Kong economy is remarkable

and it is likely to remain resilient in the short term.