TNAG-2980-FCO40-1472-British-investment-in-China-through-Hong-Kong-1982 — Page 4

Rok pl

б

RESTRICTED

Commercial Department Peking

c/o Diplomatic Service Mails Office

Osborn Barracks Waterloo Road Kowloon Hong Kong Commercial Department

British Embassy

11 Kuang Hua Lu Peking People's Republic of China

Cable Prodrome Peking Telephone 521961/2/3/4

P J Williamson Esq

Hong Kong and General Department Foreign & Commonwealth Office

LONDON

SW1

BU noted

Your reference

Our reference

Date

нак

121/12

Dear Williamom,

14518 $120/8

BRITISH INVESTMENT IN CHINA VIA HONG KONG

d for Mr Ed you to see

2 August 1982

3

copued

ofr

to Mis Bernett

TRED Plus stl.

1. In his letter CECO 301/393/1 of 8 July to you, copied to us, about British investment in China via Hong kong, Derek March commented that this was a difficult question to answer. we fully share this view.

see 6

2. In making our contribution to the list we are particularly conscious of the problem of definition and acknowledge that some of our suggestions for inclusion under the two main categories for classifying direct investment in China could well be disputed on the basis of more detailed information available elsewhere. Bearing these qualifications in mind, we have the following additions to suggest to those contained in March's letter under reference, all of them involving the Swire Group and for none of which financial details are available in this Embassy:

a)

b)

participation with the China National Light Industrial Froducts Import and Export Corporation in a cassette making project in Canton whereby Swire provide various inputs, plant and technical services to the factory concerned against the Chinese provision of land, labour services and management;

a small equity interest in the Garden Hotel, Canton, the first stage - about 1,200 rooms

- about 1,200 rooms - of which is scheduled for completion by late 1983, and

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/c)