The Correspondent, July 1992

Asia lnc... breaking new ground

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CONTENTS

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FOREIGN CORRESPONDENTS'

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North Block, 2l,ower Albert Road, Hong Kong.

Telephone: 521 15 I 1 Fax: 868 4092

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President - Steve Vines First.Vice President - Jonathil Friedlmd Second Vice President - David Thurston

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Asia Inc.....breaking new ground Karl Wilson reports on the launch of Asia's newest regional business ma9azine.

Correspondent Member Governors

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Bob Davis, Dmiela Deme, Cul Goldsæin, Humphrey Hawksley, V.G. Kulkmi, Catlerine Ong, Claudia Rosett, Hubert Vm Es

Journal¡st Member Governors

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COVER STORY

Stuân r¡r'olfendaìe Associate Member Governo¡s D. Gucia, L. Grebsød, S. Iækhart, R. Thomas

\Yillim Brker,

NEWS AND VIEWS

2

Alan Boyd examines Thai politics in the wake of the recent umest.

Professional Committe€: Convenor: H. HawksJey Members: H. Hawksley V.G. Kulkani, C. Rosen, S. rJr'olfendale,

A night at the Royal

C. Goldstein, J. Friedlmd, D. Deme, C. Ong, R. Thomas

Dominic Faulder in Bangkok on the troops raided the Royal Hotel.

Membeßh¡p Comm¡ttee: Convenor: V.G. Kulkmi Members: B. Davis, D. Gucia, C Goldsteir, L. Grebstad Entertâinment Committee: Convenor: W. Buker Member: S Wolfendale Publicâtions Comm¡ttee: Convenor: D. Thurston, Members: S-lnY,hart, B. Davis, r¡r'. Brker, H. Vm Es

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Convenor: L. Grebstad Members:D.Gucia, H. Vm Es, R. Thomas,

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H Vm Es, BobDavis, D. Grcia

THE CORRESPONDENT Wilson

SPECIAL REPORT ON INSURANCE AND PENSIONS Socialist transition in East Asia World B ank Vice-President (East-Asia) Gautam Kaj i on economic trends in East Asia.

Wall Committee:

Editor: Kql

Thai

The changing style of governorship Robert Cottrell on the lifestyles of governors past.

F & B Committee:

S.

Thai politics: A study in contradiction

26

PEOPLE

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THECORRESPONDENT

524 5031 I

JULY 1992 I

Thaipolitics:Astudy in contradiction erennial protest leader

followers saw only the injustices of a

By Alan Boyd

Thirayuth Boonmee was

corrupt ruling class and a worsening income gap.

asked during Thailand's latpolitical disturbances whether he est thought his country was ripe for revolu-

"This is not a political problem but a

element in the disparate threads of dissent

tion.

social problem," Thirayuth a¡gued,

"Not yet," he replied. "Come back in 10 years and then you will see it happen."

Thirayuth has been waiting for it to

scoffing at the notion that Thailand now had a legitimate "pro-democracy move-

was the traditional mistrust of the military, which began to resurface in the

happen since he was a student leader in

Thai politics, where nothing ever seems

the tumultuous October 14 uprising of 1973, which many regard as the start of Thailand's spluttering search for more representative government.

Yet the events of May this year sug-

to fit the tidy definitions that journalists

gest that the political pressures on Thai society are building faster than most

The rich helped get the rallies started, but it was only the poor who stayed to carry them through ; protest leaders spoke of democracy and the need to widen the

had thought possible. Ten years for a revolution maybe, but much less for a social upheaval.

On the face of it, the only common

ment".

For those used to the complexities of

would prefer,

it is a typical

study in

contradiction.

The street clashes were themselves studies in contradiction.

power base of government while their

months before the February 1 991 coup.

Predictably, the backbone of the movement came f rom the student groups

at the more politicised universities, notably Ramkhamhaeng and Thammasat, which had been almost constantly at odds with successive governments since the campus clashes of 1973 and 1976.

The students found the issue they needed in mid-1990, when the enigmatic army chief, General Chavalit Yongchaiyudh, let it be known that he had his sights set on a key government post after he stepped down.

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Despite massíve arrests embittered students still wuít on the si.delines, Prime Minister Chatichai Choonhavan,

heading an essentially civilian administration, created a post for Chavalit; but atthe urging of hisyoungteam of leftwing advisers, he secretly encouraged a campaign of harrassment that would force the general out of the government six weeks later.

There was little love lost between

Death on Bangkok's streets:

TIJF. CORRESPONDENT

JI'LY

1992

It

is no accident troops chose to fire on the proteslitrs.

themselves former campus activists.

The student campaign was already plunging irrevocably towards confrontation. ln November of that year, Suchindabanned rallies around Sanam Luang,

scene of the later clashes, under ob-

cians are voted in not by the will of

scure national order regulations and detained more than a dozen protest

prosperous Bangkok but the vote-buying favours of the poorer provinces.

The March general election returned the same tainted powerbrokers, now realigned in an unhealthy pact with the generals who had thrown them out a year earlier.

This mattered little to the sweeping upcountry provinces, where the patron-

leaders.

When the coup came in February, it

General Suchinda Kraprayoon, who had started dismantling the general's command structure the moment he was gone.

Nevertheless, the closing of the traditional door into government for top military leaders, which was valued as much for its business opportunities as its political base, was seen as an unacceptable affront to the armed forces. More importantly, it was a sign that Suchinda himself would face problems when his turn came.

Military chiefs began planning a coup in late 1990, rushing their plans fon¡vard

left the students in some disarray,

being forged between the students, state enterprise unions and the Chatichai aides,

with a reformist zeal that set about clearing up decades of economic neglect.

But thiq was to ignore the realities of semi-feudalist Thailand, where politi-

Chavalit and his military successor,

after they got word that a front was

À.

2

\)

unwilling to endorse a forcible change

of power but relieved, as were mosf Thais, at the removal of an appallingly corrupt and inept government.

The honeymoon period of caretaker Prime Minister Anand Panyarachun provided the last piece of the jigsaw.

For the first time in living memory, Thais

had a real alternative to the politics of greed, a leadership outside both the traditional military realm of influence and the self-interest of the corrupt provincial business fiefdoms that had taken over Chatichai's government.

More importantly, from the view of the rising corporate classes, Anand produced highly competent administrators

age system of village chieftans and district bureaucrats is impervious to ideology or political doctrine. However, it was a bitter setback for the more

educated people of Bangkok who had benefited most from the Anand era.

Signs that Anand's reform process would be dismantled is a deliberate snub to

a brilliant

administrator who

was seen as a political threat by incoming government, opposition and military alike, spurred the corporate section into action, though it was never quite

THECORRESPONDENT

JULY 1992

3

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the middle-class revolt portrayed by much of the overseas media.

At least three of Thailand's biggest companies, a banking group, a car manufacturer and a hotel chain, gave financial backing to the opposition politicians and human rights groups who

after the protests. Only "two or three" of his students had taken part.

mix of political outcasts and genuine democracy supponers. As could only happen in Thailand, thetwo most promi-

With split allegiances and a divided leadership, it is doubtful the movement would have survived without the common target of General Suchinda, whose cynical manipulation of the premiership had incensed just about everyone outside the Government. ln essence, ratherthan striking asolid blow for democracy, the protests became an anti-military forum. Once Suchinda was removed, they switched to demands for accountability overthose

nent figures to emerge were already on

still missing and, forthe more far-sighted,

student blacklists.

a government totally free of

Chavalit, now reborn as a "pro-democracy" leader opposed to the military

interference.

Butthe dark backroom deals that took place over the succession to Suchinda, prompting King Bhumibol to again install Anand as a caretaker leader, indicate that the clashes have not changed

were now joining ranks with the students.

The middle classes put the¡r faith in the parliamentary opposition, a dubious

seruing in government, had a definite credibility problem ; former Bangkok gov-

ernor Chamlong Srimuang had never been able to shrug off allegations of his involvement in the suppression of the 1970s student movement while he was

an atmq officer.

Most of the students came from the poorer campuses like Ramkhamhaeng rather than prestigious Chulalongkorn, where the more affluent like to send their offsPring.

military

anything in Thailand's political landscape. ln mid-September the same discredited parties, or others closely resem-

A more realistic scenario is for a permanent political alliance between the corporate sector and a moderate military leadership that will inject both guarenteed stability and the necessary management expertise into government.

Waiting on the sidelines will be the embittered students, who already sense

another sell-out. Their resentments, grounded in the widening income gap and the widespread belief that only a privileged few are gaining from Thailand's economic growth, will continue to deepen.

Research figures appear to support the rural view that Thailand is drifting apan into two nations on economic lines.

The independentThailand Development Research lnstitute (TDRI) reported last year that the income disparity had actually become greater since the era of

high growth began in 1987, and that virtually all of the national wealth was held by 1,000 families.

It is no accident that the troops cho-

sen to fire on the Bangkok protesters

bling them, will come to power on the backs of the same ruthless provincial business barons.

were trucked in from upcountry: the military is a past master at exploiting Thirayuth will probably never get his

This had the effect of accentuating

The armed forces leadership responsible for the killings will probably be

the social aspects of the protests, and suggests that the involvement of the

sacrified for the greater good of the military, but it will not change as an

middle classes was more a gut reaction

institution.

to unpalatable political circumstances

Those demanding its removal from

than a genuine grassroots movement. "l despair of ever getting our students

public life forget that the military's influence runs through every level of society, from banking to the ports, communications, irrigation management and aviation to foreign affairs.

involved in politics. lthinkthey are more interested in discos and partying nowadays," one Chula rector told me shortly

regional antagonisms.

revolution. But if he is correct in his assertion that'Thailand faces a social problem and not a political one, we may not have to wait 10 years to find out.

Alan Boyd spent four years covering Thailand for the News group of newspapers.

A night at the Royal

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Close Encounters of the Exotic lndian Kind

The Ashoka IhIllr';l.rLrr.Ìtl /\l{o\il)lr)ùÌnrctr[.]ìL(¡s.rrtsvi)i¡,ßith\/.rlr,ll,.r¡linqServite (7 (lll

F.C.C. members represent one of the highest earning, per-capita, consumer spending groups in Hong Kong.

Call Rosemary Little on 577-9331 for

further infomation.

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THE CORRESPONDENT

ruLY

1992

we say we

do ¡t, we guarantee It and

about 5.30 am on Tues-

day, May 19, steel helmeted infantrymen brandishing M16s were flushing out Bangkok's Royal Hotel. The place was a tourist's ultimate nightmare: four hundred percent occupancy and a compulsory dawn check-

out. A couple of dozen journalists

-

Thai, European, Japanese, American provided a dishevelled captive audience. They had been rounded up and ordered to sit on the faded carpet of the first floor landing as hundreds of demonstrators were being roughly herded down into the world's most infamous lobby.

Men were stripped to the waist and ordered to hold their shirts on top of their heads wlth both hands. Many were kicked, then forced to crawl across the landing. They disappeared from the journalists' sight down the semi-circular staircase, from where the plastic rattle of a rifle butt meeting a young skull could be heard. A sickly, middle aged man was indiscriminately kicked in the solar plexus as he was expressed from

a room

bursting with panic-stricken

people. More sinister, intermittent shots could be heard coming from behind the hotel for at least ten minutes after the great roar of the onslaught had subsided.

The soldiers were for the most part older, seasoned men. The crude brutality of some distracted from their grim underlying discipline as they set about

By Dominic Faulder

make sure you arc prctected by

insuranceto ensurcyou get your fees back

in October 1976, but such a spectacle was appalling enough nearly 16 years

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we îell."

on.

The same sort of military discipline had been noticeable a couple of hours earlier when another sustained barrage

suddenly subsided as officers blew whistles in the darkness. Two days earlier during a peaceful rally at Sanam Luang, it had been unthinkable thatthere would even be shooting. How quickly things changed.

Whatever mayhem was being wrought that Tuesday morning, it was no accident. The three hours before dawn had been regularly fractured by the ponderous thumping of a heavy machine gun.

The thunder of gunfire heralding the storming of the hotel erupted at exactly 5.00 am and rolled along Rajadamnoern, an awesome concert of sheer menace.

Defy it and die.

An elderly European emerged from his room in a silk dressing gown. ln a mannerworthyof Noel Coward, he picked his way through the chaos on the landing to a friend's door. A light knock won him the admission that moments earlier two bangs with a rifle butt had failed to obtain.

The night had thrown up many other absurd scenes. Journalists had been running in all directions when two young members of the hotel's staff arrived,

cowering, unarmed quarry.

People were walked and stamped on, punched, kicked, struck with rifles and pulled by the hair; doors were smashed, but no shots were fired inside the build-

resumed, the same room was deliberately plunged into darkness to prevent the lighted balcony attracting attention.

rng.

the console between the beds and

The soldiers were angry, cursing and ugly, but not out of control. There were

unwittingly switched on every light in the

no bayonetings, rapes, hangings or people falling out of windows. These may not have been the Red Gaurs

erupted from all corners.

The women demonstrators fared a little better next morning. Left clothed, they were able to hang on to some last

A large Belgian freelance slumped

against

room plus the television. Anguished howls

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THE CORRESPONDENT

JULY 1992

5

The changing style of governorship hristopher Patten, the 28th and presumably the last British Governor of Hong Kong, arrives this month to begin a job which has changed surprisingly little in its formalities and routines since the colony was founded, but profoundly in its substance. The Governor may still be'next I a

to the Almighty', in the words of Sir Alexander Grantham (1947-58), for a

t¡.

small number of old{ashioned Britons in the territory and for the civil service.

But for most practical purposes, the

o

a

mystique of his office has now been lost

Troops with cøptured demonstrators outsi.de the Royal Hotel, May 19. jourtatters of dignity. By the time the downstairs, allowed finally nalists.were the women were out of sight and onlY the men remained outside.

Over a thousand were down on their haunches in the cold dawn light, hands securely bound behind their backs with shirts, heads bowed' The forlorn scenes at the Royal that grey dawn contrasted sharply with the drama and heroism of the night before' Outside along Rajadamnoern Road, a huge and overwhelmingly peaceful crowd had sat its ground drumming and

chanting

to a steadY beat. At about

10.30 pm, a heavy barrage fired mostly in the air failed to intimidate them' Jubilation erupted as the guns fell silent' but then it became apparentthat some shots had found their marks. Teams of doctors struggled in the hotel's bloodied marble lobby to cope until valiant ambulance teams arrived to wild applause.

By 2.00 am, an exhausted

Young

doctor from Siriraj Hospital estimated that at least five people were dead in the lobby, at least five more would not have made it alive to hospital and some 100

others had been wounded. The latter included three tourists shot within yards of the hotel. Two had made the mistake

of going to hear the opposition leader Chamlong Srimuang speak, unaware

6

THECORRESPONDENT

JULY

1992

that he had been arrested during the afternoon. The third was seizing an unrepeatable chance to burst upon the world of photojournalism. Blazing flashes from his camera, he was rather inopportunely shot in the leg.

As the night wore on, the crowd outside began to seep away leaving a .militant core whose increasingly anarchic tactics were of the kind that give pro-democracy movements a bad name.

Elsewhere in the city, traffic lights and

police booths were being smashed.

Hijacked buses were used to ram military barricades that had been set across Rajadamnoern and torched.

Deep in the night, the old public relations department over the road and other government buildings nearby finallywent up in spectacular blazes kindled

by diligent firebugs well before midnight. The fires illuminated relative lulls before the troops finally stormed the hotel. By then the excesses of a militant few had left some observers feeling pretty depressed, not least for playing

into the hands of hardliners. But that may well have been the objective. The most extreme acts were not the work of peacef u I pro-democracy demonstrators drawn from the ranks of the emerging middle-class, but something organised from far darker stands.

Rajadamnoern that morning was a stilled battlefield asthefire brigade hosed

down the smouldering hulks of government buildings. The ground was strewn with debris and razor wire. An overturned BMW was recognisable only by

its alloy wheels. Aluminium panels on gutted government Land Rovers had melted. Bullet holes flecked the windscreen of a red and cream BMTA bus, and whisps of smoke slipped from its charred wheel arches.

Bullet pocks and holes in walls and

steel shutters, and three patches of blood on the hotel side of the road were testimony to the previous night's carnage. ln the shadow of the hotel, scores of exhausted soldiers lolled on the pavement, helmets off. An officer ànd half a dozen men suddenly turned on photographers. Films not safely squinelled away were pulled from cameras and out of pockets. Any argument was quite futile.

By 7.00 am it was time to slip away through a battered city waking to learn of fresh horrors on its killing streets.

Dominic Faulder is rhe managinS correspondent of Bureau Bangkok and a longtime contributor to Asiaweeek.

4

and its powers have been dispersed.

Until even a decade ago, the Man in the White Suit could level mountains, throw up new towns, break strikes and raise taxes at the stroke of a pen. Today, his hands and feet are bound tight in the cat's cradle of red tape spun by Sino-British diplomacy with and since the Joint Declaration. Patten will find himself able scarcely lo have a gas main laid on Lantau without prior de-

By Robert Cottrell

looked roots of Hong Kong's development in the 1950s. He would do well also, if he has not done so already, to find time for Timothy Mo's novel, Án lnsular Obsessio¿ with its picaresque treatment of the colony's founding years; and Dick Hughes' Borrowed Time, Borrowed Placg which, though its narrative halts 20 years ago, remains the best brief anatomy of Hong Kong.

bate in the Joint Liaison Group, the Hong Kong and Macau Affairs Office, the Airport Consultative Committee, the Lands Commission, the NewChina News Agency and the Legislative Council.

It is not the sort of position in which one might imagine Sir Henry Potlinger happy, for example, or Sir John Davis, who ruled in those far-off days when a Governor could, according to taste, start a small war on his own recognisance, assault his chief justice or spend whole I nights drunk with the Commander Brit- \) ish Forces. But it is a necessary conse- q quence of the more general erosion of Hong Kong's new Governor Britain's role in the territory.

Patten will have been comprehenCandid, informal accounts of life here sively, and no doubt conflictingly briefed written by governors themselves are, before arrival on the various issues which however, few and far between. Perconfront him in Hong Kong. For backhaps Patten will think to keep a diary of ground reading, he is known to have his own for eventual publication, there worked through Dick Wilson's Hong being no possibility of a future governor Kong, Kong Kong , with its particular making good that gap. Katherine Matwealth of detail about the often-over-

lock's lhe Sfo ry of Government House, published by the Hong Kong Government, is a highly entertaining canter through the domestic arrangements of the various incumbents, based mainly on official papers. But for a day-by-day view of a single governorship, the best source remains the long and chatty letters written each week by Sir Matthew Nathan (1904-7) to his mother in Notting Hill Gate, collected and microfilmed by the Bodleian Library. lf Patten chooses to compare his own arrival in Hong Kong with that of Governor Nathan, he will at least be able to put aside any private worries about lack of preparedness. Nathan, who was a 32-

year-old bachelor at the time of his appointment, had served in the army and in Africa, and knew next to nothing about the Far East. When his ship to Hong Kong stopped briefly in Penang, he wrote to his mother that: It is as much Chinese as Malay, and I saw something of what my pigtail subiects will be like.

After dinner with the Malayan colonial

secretary, it was onward to Hong Kong by way of Singapore where Nathan recorded: We brought on board a Mr Hewitt, president oî the Hong Kong Chamber ol Commercq whom it has been useful to have on board as he has told me much that I wanted to know about the öusrness oÍ the place.

As his ship approached Victoria Harbour, Nathan began to study the arrival

-

ceremony programme. He deduced that:

Much is to be made of this occasion ... [So] I wrote down and learned this morning a few impromptu re-

marks, which I hope will meet with approval.

By 1904, Hong Kong was a positively respectable place; and Nathan was very much a man of his name and class, with a fastidious eye for social niceties.

THECORRESPONDENT

JULY 1992

7

-l1---

He wrote of his civil servants, soon

after settling in: The officials are mostly good men ... [But] many oî the non-oÍficials, es-

pecially the lower classes, are very casual. They do not take oft their hats, or observe the usual courtesies - partially, I understand, owing to slackness under the late regime,

and partially, I am told, owing to democratic ideas that come from the American community in Shanghai.

He was tolerably well oif on his otficial

wage, though by no means as rich as the territory's first governors, Pottinger, Davis and Bonham, who because

-

they doubled as Superintendents of British Trade received 6,000 pounds ayear,then about ten times as much as a senior civil service salary in Britain (Patten's salary of $178,000 a month, by contrast, is about four times the level of a senior civil service salary, though

early morning, we are quite in the clouds, and the walls, Íurniture and books are showing the effect ...

He travelled down to the central gov-

ernment offices two or three times a week by the Peak Tram, the front of which was reserved for the Governor's use. This he considered a 'most undignified' arrangement.

By the autumn, Nathan was well into his official routine, instantly recognisable to this day, recording on September 21 that: I have commenced inspections of the public institutions and spent a fairly disagreeable afternoon in hospitals and lunatic asylums, and a

-

the taxation differential increases that ratio in real terms).

The Hong Kong Governor'swagewas cut to 4,000 pounds for Sir John Bowring, and 3,000 pounds for Sir Hercules Robinson, provoking noend of anguished correspondence with the secretary of state for colonies. Robinson persuaded Lord Newcastle to raise the wage to 5,000 pounds; by Nathan's time, it was back up to 6,000 pounds, but now described as 4,800 pounds salary and 1,200 pounds expenses.

All governors complained, too, about their accommodation. When Nathan settled into Mountain Lodge, the summer residence of governors from 1867 until the Pacific War, he launched in his private letters, into the litany of bleats which are still heard daily from the Peak dwellers more than a century later:

stands up when he enters a room. He

hard day climbing hiils to look at forts. This afternoon is lor the prisons and the firc brigade.

when in Hong Kong, a sort of aristo-

ln November, he provided his mother with this brisk summary of the previous seven days' activities: Since I [astwrote, I have inspected

one Volunteet camp, attended two bazaars (freely purchasing rubbish),

paid and received calls of various

My servant, Ah Cheong, seems to

me to be thoroughly incompetent.

Possibly when Ah gets to know my clothes and my ways and to understand a pad of what I say, then things may go more smoothly with him .,.

The worst thing about the place is the damp. At the present moment,

given dinner parties of 8 - 12 people on four or five nights each week, the majority of his subjects remained strangers to him. He spoke no Chinese, and Ah Cheong's was the only Chinese name to occur in his letters throughout 1904 he did record on November2S

-though

ended the practice following hints from

some Legco unofficials that the club's surrounding greenery might make an attractive spot for temporary housing settlements, a tactic of which Grantham seems quietly to have rather approved.

When Grantham talked about being socially'discriminating', what he meant was that he thought it wrong for a Governor to dine out privately, except perhapswith consuls and heads of public bodies. For, he explained:

lf [a Governor] were to accept an

accept invitations from Mr and Mrs B and the whole way through the alphabet.

He also made it a rule not to attend cocktail parties unless they, too, were

democratic figure than his immediate predecessors, disdaining the full colonial rig on arrival and seemingly intent on remaining the first plain 'Mister'ever to rule Hong Kong.

being given by consulates or official

It is probably the only sensible way to

bodies. Even then, he had a set routine: We would arrive promptly at 7pm.

The governor must always arrive on time, neither a minute late nor a minute

go, and it may well work, reversing the

early (to arrive early is the crime of crimes). At 7.15, the aide de camp would come up to me and say,

"Excuse me Sir, but you have another engagement, and it is time to leave". This suited the host, for as long as the governot was therc, he could not feel lree to attend to other guests.

To stamp his own style on the job, Patten has evidently decided that the

invitation to dinner from Mr and Mrs

right way to play out this final, politically

A who held no particular position in the colony, he would then have to

awkward governorship is

to

present

trend under Sir Edward Youde and Lord

Wilson for the governor to become an increasingly reticent and rarified figure.

The trick now for Patten will be to preserve, through sheer force of personal-

ity, the illusion of power without the substance of it, untilthat evening in mid1997 when British rule recedes finally to a Cheshire Cat-like smile of disembodied benediction low in the air over Upper Albert Road, and disappears with the descending flag.

Robert Cottrell is a former correspondent for The Independent. He is now wriling a book on Hong Kong.

himself as a more engaged and a more

@

for a governor when on leave to take his place in a queue and to have his toestrcdden on in a crowded railway

carriage. lt búngs home to him that

he

is

but an ordinary mortal like

anyone else.

He recommended for a Governor,

twice.

Yet, though Nathan seems to have

1992

ln a Crown Colony, the Gouernor next to the Almighty. Everyone

is deîerred to on all occasions. lt is always "Yes, Sir", and "Certainly Your Excellency"; heady wine that is bad tor the constitution il taken too Iong at a time ... That is why it is good

one small dance and played polo

JULY

do worse than to turn to Vra Ports , the memoirs of Sir Alexander Grantham, who was alert to the occupational hazards of pomposity and affectation even if he was not entirely immune to them.

The book has none of the local colour of Nathan's letters, but offers plenty of tips on protocol. Grantham observed modestly that:

The Hong Kong Governor's wage was cut to 4,000 pounds Íor Sir John Bowríng, and 3,000 pounds lor Sir Hercules Robinson, provoking no end oÍ anguíshed corre sponde nce wíth the secretary of state for colonies. I

comfortable. But this is remediable

THECORRESPONDENT

For the sense of a Governor's life rather closer to his own, Patten might

É

ent arrangements arc not altogether

8

selves.

is

admirals, dined otficially on two flagships and at two consulates (Frcnch and German), had one big olticial and many private dinner pafties, given

... The furniture is ugly and pres-

... The most interesting event oÍthe wæk was a di nner party Íor 24 Ch inese, who looked nice in theh best clothes and pigtails and I think enjoyed them-

and extratefiitoilality ... But the age of 'blimps' is ove6 though a few of them temain, even in Hong Kong.

Perhaps on that last point he was thinking of the Shek-O Club, which at the staft of his own governorship was the last important club in Hong Kong formally to bar Chinese members. lt

cratic golden mean:

He should be digniîied without being pompous, approachable and friendly without being intimate ... He should not conÍine his associations to the'upper crust', îor he belongs to everyone in the Colony, from the highest to the lowest. He must be discriminating, but not exclusive, in the social entertainment that he ofters and accepts.

I

I

Simi Winery in the Alexander Valley produces wines of excepdonaf balance and finesse that express the vineyard's personality rpith fine, complex aromas, intense ffavours, and supple texture. Its six varietafs - Chardonnay, Sauvignon Blanc, Chenin Blanc, Cabernet Sauvignon, Chardonnay Reserve, Cabernet Sauvignon Reserve - can be enjoyed with a variety of dishes.

For Grantham, race was not so potent a social divide as it had been for Nathan. ln general, he thought: Hong Kong has never had a colour

problem like the AÍrican colonies, and the Chinese have as much racial pride as the Europeans. lt is the mental

arrogance on the part oî some Europeans towards Asians that has created as much, iÍ not morc resentment than the physical aggressions

Auoiloble at Rénry Fine Wines, selected restauronts and supermorkets.

like the establishment of colonies THECORRESPONDENT

JULY 1992

9

COVER STORY that costs simply went out of control.

Kennedy, who helped open The Economr.sfb first US office and was associate

Asia Inc ooo breaking new ground

publisher responsible for worldwide advertising and foreign language editions of Scientific American, said: "We are utilising all of our resources to keep costs down. Resources such as technology and our own database."

Costs will be lhe key to the maga-

Despite its cr.itics, Asia Inc's editor-in-chief and chairman, Sondhi Limthongkul, is adamant "Asia Inc is here to stay ... at leastfor the nextfive years." formerThai journalist turned businessman showed the self confidence, drive and determination that has made him one of Thailand's leading entrepreneurs when he launched Asia's latest addition to the business magazine market at the end of last month.

Despite the fact that publishing is no longer the mainstay of his business activities, Sondhi still considers himself a journalist first and a businessman second.

So why venture into an area where others have gone before and failed?

"Why? Because the.time is right," he said with confidence.

"The world is changing at a rapid rate and no where is this more evident than here in Asia.

dull and is far from being boring. One of

he

"Today we are seeing old family money,

which has dominated the economies of most Asian countries, being replaced by young entrepreneurs who are not

By Karl Wilson

the prime objectives of Asia /nc is to

Bangkok which was founded by Sondhi in the 1980s.

perspective on business, written in a afraid to capitalise on the region's growth.

"These entrepreneurs are not only venturing out into the region, they are also looking at business opportunities in America and Europe. And with the demise

of communism we are looking at the emergence of even more market opportunities.

"The idea behind Asia lnc is very simple ...

I wanted a

magazine that

businessmen like myself could read ... a magazine which reflects what businessmen are doing and thinking. The problem with business magazines in the region is that they tend to be dull and uninteresting. They give the impression that business is conducted by boring men and women.

"The reality is quite the reverse.

Business, especially here in Asia, is not

lively style and packaged in a way which makes it easy on the eye."

According to managing editor, Anthony Paul, the writing style used in the magazine is similar to that of American business publications such as Forbes and Foftune.

"The American's, unlike the British,

make business interesting

to

read.

Anyone who reads Forbes, for example, is not bored," he said.

Paul, whose publishing career spans 35 years in the Asia Pacific region most notably with Feader's Digest and Business Tcikyo, said that apart from how

stories were presented design was crucial.

"What's the point of having superb writing if the design is not there to entice

the readers into the magazine? "

he

ri-,,

LIRGË['!'i

PRloRlTlHg i \

ä

SOM€ INDUSfRIES fÁC

"ï:îmsiTr;

fHE LINE.UP FOR PROfELECOI¡l¡Ul¡lr DOW

IOilES I TtlF THÊ IilSIDf

A I¡AGAzIiIE Pntv

'

SHOULD YOI

(L-R) Anthony Paul, Colleen McCudden, Sondhi and Peter Kennedy.

THE CORRESPONDENT JI.JLY 1992

company of the Manager Group in

bring to the reader each month an Asian

AStÃ:s Fl'\f

10

zine's success or failure in the long run, according to media analysts.

Asia lnc is published by Manager lnternational, the international holding

r

ln a survey of Asia's top 125 perform-

ing stocks, published in the Sunday Money section oÍ lhe Sunday Morning Post recently, the Manager Group was rated ninth.

Sondhi took the company public four years ago and today has a market capitalisation in excess of US$300 million.

As one media analyst pointed out: "Asia lnchas a lot going for it in terms of economies of scale. Printing, for example, is done on the company's own printing presses in Bangkokwhich keeps print costs down.

"On the advefiising side the company owns 257o of Globe Media, America's biggest and one of the world's biggest

media rep organisations, and owns its Asian subsidiary.

"Apart from that postage and pack-

Art dírector McCudden and Paul

aging are a lot cheaper in Thailand than in say Hong Kong."

But it is the advertising side which will be the big test of Asia lnc's success.

said. "Both go hand-in-hand."

That task fell on Colleen McOudden who was art director on Business Tokyo. McOudden, who worked for five years with one of Americas top creative design studios Walter Bernard and Milton Glaser, has an impressive record having been paft of redesign teams for such titles as Time, lhe Washington Posf and L'Express. "l think her talent has shone through with Asra /nc," Paul said.

But despite the optimism held by the magazine's editors and staff, comparisons with the ill{ated Billion can nolbe avoided.

Paul said he looked al Billion when developing Asia Inc. "lt was obvious comparisons would be made, " Paul said. "But I think anyone reading Asra /nc will realise that we áre nothing like Billion," Paul said.

Sondhi said: "Ours is

a

different

publication altogether and so the comparisons are without foundatibn."

Billion, according to industry sources,

cost about US$8 million and closed down after about a year. lt is estimated that US$10 million will be spent on Asia lnc over the next five years before pay back begins.

The problem wilh Billion, according to Peter Kennedy, Asia /nc's publisher, is

The magazine will run at about 100 pages an issue with between 24-30 pages of advertising. According to Sondhi there are 1 40 pages of advertising booked

until the end of the year.

He said he is committed to the magazine for at least the next five years but

j'l am not your conventional publisher. I don't look at 40-60 ads to editorial splits. I want to make sure that the reader has something to read first.

Although I am responsible for the publication, I think as a journalist first so I must print and bear it." added:

Sondhi: Don't take me lightþ

Designed for Asia's new breed of

A former journalist who began

businessman aged between 30 and 50, Asia lnc's initial circulation will be 40,000 rising to 80,000 within the next five

his reporting career on university papers in California and Utah, Sondhi still likes to

remind sceptical journalists that as a young reporter he spent time, 30 days in fact, in a Thai prison for "simply repoding the truth" back in the 70s.

Apart from owning Thailand's biggest printing press and the country's leading Thai language business newspaper, the company has diversified into commercial printing with plants in Britain and the United States, information technology, media representation and information services.

years. Which, according to Sondhi, is not unrealistic.

"l know I have my critics but this

I

would like to say to them ... don't take me lightly because I'm here to stay."

(Editols Note: We had hoped to interview T.S. Lo, owner of Hong Kong's new weekly news magazine Window, but despite repeated attempts our calls were not returned.)

d THECORRESPONDENT

JULY 1992 1I

INSURANCE AND PENSIONS

Executive retirement planning: A solution to long term tax David Thomas, managing director Thomas Spencer & Associates Qutte simply, BUPAGoId is a healthcare plan for

TWENTY years ago in the United Kingdom, it was quite

those people who have a real need for (and truly understand

themselves in group pension schemes (known in Hong Kong as provident funds).

Because of the lack of flexibility, tax planning and investment choice that this gave them, someone came up with the idea of withdrawing directors from the group pension scherne, creating a small self-administered retirement schemes for executives and, many years later, a multi-million pound industry was born.

Although in the very early stages, the same could easily

the value of) totally comprehensive healthcare for rhemselves and their dependants.

fn short, it isn't a plan for those people who choose to pay bottom dollar.

It

occur in Hong Kong which is relatively immature as an executive pensions industry. ln the UK, those who divert

isrlt a plan for those who want the barest

minimum in terms of cover.

And it certainly isrlt a plan for those people

who

only want a level of protection that gives them the most basic treatment available.

On

the contrary BUPAGoId is a one-stop package

of healthcare benefits, assuring its members a level of completeness that has never before been available in Hong Kong.

[Jntil

now, that is.

For details call827 0623.

BUPAGo[d

common for directors oI large British companies to find

significant earnings into pension arrangements are, to a great extent, driven by the desire to avoid the relatively high tax rates that apply in Britain. ln Hong Kong, where tax rates are lower, the tax break of 15 percent is unlikely to be the governing motivating factor, pafticularly as there are well known limits on the amount of tax deductible pension contributions that the lnland Revenue department will allow.

The reason for people to get excited about executive pensions in Hong Kong is largely due to the very mobile nature of Hong Kong's executives, whether of local Chinese nationality or expatriate. As a result, Hong Kong executives will be interested in retirement planning for all or some of the following reasons:

age to help retain, motivate and recruit the very best people.

2) To personalise the tax and investment planning opportunities for directors, executives and their employees.

3) To allow freedom of choice for investment, currency exposure and risk profile.

4) To allow freedom of choice for administration.

5) To be cost effective and simple to understand and administer.

6) To be flexible enough to be fine tuned to specific circumstances and requirements.

It is possible, using a simple and flexible retirement trust, to

design an employer-sponsored retirement arrangement written under trust in an offshore jurisdiction. lt can be completely seltadministered, to allow complete investment freedom, and can be designed for a single or group of companies or executives. Not only will executives be able to take advantage of various tax breaks available in Hong Kong but, in addition, they will benefit from all of the associated features that go with a bona{ide retirement arrangement:-

ASSET PROTECTION The funds are separate from the company's business and

are protected against creditors in the event of bankruptcy, hostile actions, legal suits etc

* There is a huge and growing market of international compa-

nies and staff. * There is a tendency for governments to encourage private pension planning to relieve pressure on the state system. * Everyone seeks tax efficient and secure methods of repatriating funds to other countries. * lndividuals recognise the importance of planning for retirement.

With the growing interest in pension planning in Hong Kong, due mainly to impending legislation which may eventually lead to compulsory schemes for staff, many of the suppliers of pension products are focusing their activities on the Hong Kong market.

Unfortunately, many of the products available are designed to reflect the objectives of the institution supplying the product rather than the needs of the executive and their companies who, in my opinion, seek the following: 1) A well understood and generous employee benefits pack-

TAX FREEDOM The funds accumulate tax-free offshore and the benefits can be drawn in the form of a tax{ree lump sum, subject to any restrictions imposed by local tax authorities. As most countries have legislation designed to encourage private pension provision, tp relieve pressure on the state system, their tax treatment of legitimate offshore pension arrangements can be particularly attractive.

INVESTMENT CHOICE A self administered pension fund can be used to invest in any type of investment chosen by the individual. The appointed trustees have to observe the usual "duty of care" requirements but, typically, they can be instructed to invest in residential property, international stocks, bonds, currencies, time deposits, land etc.

BUPA Lrmrted, BUPA Centre, 141 Connaught Road lUest, Hong Kong

A SPECIAL

REPORT THECORRESPONDENT

JULY 1992

13

INSURANCE AND PENSIONS

of income which creates a number of tax problems when leaving Hong Kong and moving to an alternative jurisdiction. Those who have tried to shelter their assets against income tax, capital gains tax, and estate duty\inheritance tax will understand the difficulties of finding a structure that personally out

HONG KONG ESTATE DUTY AND WORLDWIDE INHERITANCE TAX FREEDOM The benefits payable on death under a properly established retirement scheme pass to the nominated beneficiaries outside the deceased's taxable estate.

This allows the individual to move assets outside of his\her estate without losing control in terms of investment decisions, the ability to take the assets back etc.

meets their needs. A properly constructed retirement trust provides a number of the answers.

It must be clearly understood that, for a retirement trust to confirm the benefits described above, it must be a "genuine" retirement arrangement and not one artificially created for the

purpose of tax avoidance.

plan will encourage the executives to save for the long-term which is the corner stone for a successful long-term financial

Many tax jurisdictions have become wise to a number of tax shelters that have been constructed over the years and they will certainly have no difficulty identifying a scheme which is not "genuine".

It is therefore important to consult a professional adviser in this technical and complicated area as a self-administered

strategy.

The alternative to retirement planning is to save money

retirement trust is not a product but more a serious and sophisticated deferred remuneration exercise.

RETIREMENT PLANNING

A properly constructed and self-administered retirement

FREE TAX NOTES FOR

UK

EXPATRIATES

We have published a booklet entitled "Tax Notes for UKExpatriates" which is available free of charge to readers of The Correspondent.

Full of practical tips and advice for the working UK expatriate and those who expect to live in the UK, it covers clearly the following subjects:

------ Residence and domicile ------ Tax planning opportunities ------ MIRAS

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To receive your freô copy, please complete the coupon and send it to Thomas, Spencer & Associates Ltd., 6ß Bank of America Tower, 12 Harcourt Road, Hong Kong, Tel;877 5880.

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A SPECIAL REPORT 14

THE CORRESPONDENT

JULY

1992

INSURANCE AND PENSIONS

Looking for the right medical insurance David Stradling, editor Hong Kong Insurer WITH HONG KONG'S government{unded healthcare system looking even more pallid than most of its patients, local medical insurers are bracing themselves for boom days.

Never has their case for persuading local consumers to purchase their products been stronger and never has the consumer been better placed to get exactly what he wants a fair deal for his money. ln recent years there has been a definitive movement on the part of the medical insurance industry to brush up its overall public image.

That has been in no small part due to an efficient industry public relations machine, run under the responsible hand of the Medical lnsurance Association (MlA), which has come up with a formidable sales pitch. Today, some 13% of the population carry medical insurance cover.

Although the majority of insureds fall under group schemes (70% in all) operated largely by employers, an increase of 38% to 223,000 in personal lines products last year indicates that the times are indeed changing.

Of course, stories of people falling victim to poor coverage continue to arise from time to time. For example, those who spend time in hospital or are treated as an outpatient only to find that their policy falls far short of the mark when it comes to covering costs. While such short falls can be the result of a wide number of factors, perhaps even sometimes because of misrepresentation on behalf of the underwriter, the MIA continues to point its finger at the failure of local private medical practitioners to come up with a fixed schedule of fees. lnconsistencies in charging has become a major point of contention and indeed, this sore subject has been something of a rift between the MIA and Hong Kong Medical Association (HKMA).

To help combat the problem, the MIA has studied the issue carefully and is soon to recommend a minimum level of hospital benefits coverage to its members. lt is also in the process of updating a schedule of surgical fees.

To further discourage disputes in levels of coverage, the MIA continually emphasises to its members the impofiance of clear-cut policy wording, while the Hong Kong Consumer

Council (HKCC) advises the public to look carefully at their policy options before signing on the dotted line. ln February's issue of Choice Magazine, its media mouthpiece, the HKCC printed the results of an extensive market survey of the territory's overall insurance healthcare scene.

As well as giving extensive advice on what to look for in an insurance policy, the report pointed to a number of possible

pitfalls which the consumer may encounter. lts observations and advice: 1. The cost of daily room and food charges.

Most plans limit cover to a specific number of nights one can spend in hospital, typically, 30 days, but in some cases extending to 365.

2. Doctor's consultation fees.

These should be paid on a daily basis. Without such a facility the insurance policy is deemed inadequate.

3. Operation costs.

Traditionally, hospitals divide the costs of operating into three segments: a. surgeons charges; b. anaesthetists charges

and; c. charges incurred in the operating theatre.

Because charges are calculated in accordance with the size of the operation, either minor, medium or major, and because insurance policies set a.maximum level of cover for each category, the policy holder may find himself out of pocket.

4. Level of insurance premiums.

As with life insurance, age and health are the most important factors in determining premium rates. Under normal conditions, the older the insured, the higher the premium. Policy holders can expect to have premiums adjusted every one or two years.

The HKCC also notes certain conditions under which the policy holder will be disallowed from making any claim. For instance, if he were being treated for an illness at the time of taking out insurance, or if he should contract Aids within a two to three year period of the same time.

Generally, consumers looking for medical insurance should not have much difficulty in coming up with a product to suit individual needs and budget. There are a plethora to choose

from.

At the top end of the market are products such as BUPA

Gold, aggressively marketed by BUPA, the British insurance company, and well worth its weight.

BUPA is recognised as one of the top six big medical insurers, rubbing shoulders with Blue Cross, AlA, National Mutual, Manulife and Carlingford Medical.

Speaking recently, Nicholas Donne, chairman of the MIA expressed confidence in the role which the private insurance sector would play in the future of Hong Kong's healthcare.

While discouraging the idea of a Central Provident Fund, he said government needs to take a hand in encouraging more people to rely on the private insurance sector. "Even if 5% can be persuaded to move across, that would make a massive difference to the overall scenario," he said.

A SPECIAL

REPORT THECORRESPONDENT

JULY 1992

15

þxeu Yo.¡ ]tAv€

You'¿c SL€€,P Soc¡uDcY

INSURANCE AND PENSIONS

A HOQTAAG€ I¡ITU CO)1L18

]RI It ID(G]E

Finding a Pension to suit

C(OlLlE

(& I Rt(O)lElEt RlltSO)N

through the red tape and distribute their products at a cost far below that of companies based in Hong Kong," said Robefison. ln the meantime, those which are registered continue to serve a small but exclusive market which encompasses both members of the expatriate community and large numbers of astute local investors.

Robertson's company offers two schemes, the Managed Savings Account and the Managed Pension Account, both of which are based in a popular tax haven, the lsle of Man. The former is a unit-linked regular premium savings plan

a viftual doorlo-door

contract with the facility to accept single premiums. Life

basis," said John Robertson, manager of Royal Skandia Life

assurance cover can be added if required. lt may be affected by one applicant (an individual or a firm), or on a joint basis by two policy holders.

It's a popular product and unlike certain policies is not handicapped by the "capital" or "initial" unit structure, meaning 100% of contributions are invested from day one.

Premiums can be altered from time-to-time in accordance with the individual's financial standing and, if necessary, even suspended.

As with other such savings schemes the policy holder is not

under their arms and distribute on Assurance Ltd. "The downside is

that if something went wrong then the policy holder may not be able to get a redress. For instance, if there was a dispute in the actual product then they would have no official body to aim their complaint at."

This contentious issue has also been expressed in the past by the other'officially recognised retailers, Clerical Medical lnternational (CMl) Eagle Star, Royal Life and Sun Alliance.

"We go through all the motions of paying licenses, setting

'(ue êxftf,rS üruo o?rce, A CoxR^er€ SÉâIICE AI.¡D A U.K, ffiICÉ

up offices and having products approved, while they cut

ACCORDING to the old adage, all that glitters is not gold. And that, say the territory's officially registered offshore pensions scheme managers, is definitely the case in Hong Kong.

They are speaking of a major loophole in the law which allows company representatives from competing firms to promote their products here without having registered with the lnsurance Commissioner and with no product stamp of approval from the Securities and Futures Commission.

"There are several companies that operate here and throughout the region through a system of travelling company representatives. They arrive at Kai Tak with their policies tucked

o'All tetítetnent pløns øte equat but sotne ate tnof:e equal thøn othets."

r B€sr U.¡(. er¡o leç-*tu PAfes ¡ Uptoræ toer¡ Sor.CCes o ltyæP¡rf€ a¡¡o Drscousr S0t6xes o Qofr Flr¡a^¡C,^¡G o fþ R€r{rux FoQ.Lerl&¡ffilv

Talk to Matheson PFC before making your choice between the myriad of available retirement plans. The Consultants who specialisoinproviding financial

¡ l?¿fbsesseo Ro@fres Aver¿e6É

advice onretiremørt planning would

be pleased to conduct an initial consultation, with no charge or

Coleridge Cole & Robertson 20e Sheil

toi5l

3å;'2rlie"i;:3äi

commitme,nt, on whichparticularplan suits your personal circumstances best.

centrar, Hons Kons

Please provide me with more information on your services.

ContøctTim Nicholls or lvor Dalgleish

I am (please tick the appropriate boxes):

T Without school fee arrangements T Without pension arrangements tr Without suitable life cover T Concerned my existing arrangements may be inadequate

u

IWJ Matheson PFC

Looking for residential finance ln need of university fee advice

A

Tel: 890 8448 Fax: 8902524 LONDON o SYDNEY

Tel (Home)

Address

Tel (Office) Date

Jardin6 Pacific bcincss

32Æ World Trade Cent¡e, CausewayBay, Hong Kong

ln a muddle and need help

Name

or letten

TBTFff

I

T tr

by phone,føx

¡

KUALALUMPIJR

¡

MANILA

¡ JAKARTA

A SPECIAL

o REPRESENTATIVEOFFICES:

TOKYO o BANGKOK

REPORT THE CORRESPONDENT

JULY 1992

17

In today's highly

INSURANCE AND PENSIONS of five policy until aminimum advised to attempt to cash in the rermination

," i:":îåï

î,f

äî:,"

the same in ore¿ominantlY much

of three ã investing in a choice

ul$, it differs in,thatlhe T:::::: penslons "term"'..while the saving account is written to a ageJ , ¡¡-r:^ is written to a "retirement Clerical Medical lnterna"aao,int Another popular p'o¿*t ¡t The currencies, GBP, Ecu an¿

tional

Reti

rement Plan,

m of

t"*iiå:Lt#: retiremenr benef its Plans l¡""tt"nt"t: Lil? thein mind' Jesigned witn'flexibility

lnvestors have the tr"e¿om

conttib

to-tn"ot:'lh.:'l::n

"'::lïrï'ffTJrl

currency minimum of GB ject to a

s$75 Per month or

minimu

GBP50/US$75 per month or GBP500

oiÍLl'ä;'"ts

level of

"t

¿¡¡ti¡/US$750

or att'oÍ achoice or rour mav be linked to anv five bond

:lÏil]',i::

risk-sraded investment funàt' tn¡n"én and three index tracking funds, two currency ,""átãi'n¿t f

unds.

r L., ¡h^ ¡ñr,^ôr^7ô

-tl'? ffij "n:lilÎ:i::i:1i,iiïiil: ffi i: ::n :t"'l : e 20 ere "".'iil.Ï,n' "ï:'iìi' ïi''i.''ä' f e "Durins the plan term, the

na

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vi rt u at

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v tax

betwee

anvwh

as

employment market, employers need

and 70, this should have developed into a substantial pool of money," said Pat Tuohy, regional manager, Hong Kong and

even more support to keep existing staff

Far East.

Tuohy referred also to the much publicised 131C savings scheme which was designed in the Channel lslands and is marketed by his own company as well as others such as Norwich Union. While not speaking unfavorably of what was

and attract talented new staff. So

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THE CORRESPONDENT JULY

1992

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initially heralded as the "first real international pensions plan," he did admit that there was too much hype over the product.

"The 131C is really a savings plan wrapped in some fancy Jersey legislation," said Mr Tuohy.

He explained, '131C is normally a with profit policy but unitlinked plans are also available. lt was showing historic yields of about 20% sterling in a very safe environment and it was very much this factor and nothing to do with legislation that contributed to its popularity. lf you're a with profits company, every penny you make after expenses is basically there purely for the benefit of the with profits policy holder."

Speaking generally, Tuohy said pension scheme investors should, ideally, be prepared to put aside a contribution oÍ 25'/" of income if they want to retire on 100% of total salary. The average contribution however is somewhere in the region of 10-15%. ln his opinion, the best pension scheme operated anywhere in the world is that of the UK's civil service, where the 257o recommended contribution is met.

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AEA InternAtional: Providing peace of mind GANSU PROVENCE, in western China, is not the most ideal place in the world to have an accident as one tourist found out quite recently.

Just outside the town of Dunhuang and travelling west along the famous Silk Road the tourist was thrown from his

camel and broke his leg.

Now, Dunhuang is not known for its modern medical facilities. lndeed, hospitals in China, except for those set aside for the privileged few, are not the sort of places an injured western tourist would really want to be hauled into.

While the staff may be friendly and polite the facilities, to be kind, are primitive.

The fact the tourist was carrying insurance, which included Asian Emergency Assistance (AEA) guaranteed his repatriation to Hong Kong within 24 hours.

Businessmen ánd travellers alike often find themselves in places which are remote and often dangerous. Although they may hold good medical insurance cover, it does not necessarily mean that it covers emergency evacuation.

This is where AEA has made its mark in Asia. Established in 1982, AEA not only provides a medical evacuation it also offers a wide range of services from tailor made insurance plans for companies and individuals through to providing medical kits for travellers. AEA also carries out a number of other services such as replacing lost cash and travellers' cheques, allowing for cash advances in urgent medical cases and a 24-hour-a-day, seven days a week, year round medical advice service.

The man behind AEA was French doctor, Pascal ReyHerme, who worked with an emergency mobile medical unit in West Africa in the 1970s. He saw the need for such a service in Asia when he was resident doctor at the French embassy in Jakarta in the late 70s. He saw the benefit of having doctors on callto meet emergencies in areas which do not have immediate access to good medical facilities. His idea was to set up a network of mobile doctors who can react to an emergency, stabilise a patient's condition before moving the patient to the nearest suitable hospital.

On any given day of the week, AEA is sending medical help to remote regions throughout Asia and the world.

OvelI ,000 corporations subscribe to AEA worldwide, among them multi-nationals like General Electric, lBM, Dow Chemicals and Shell.

'Our services are available to everyone from the very large corporations that send teams of people out to remote corners of the world to small trading companies that have one or two people travelling in CHina," said AEA's general manager for Hong Kong and China, Hap Funk.

AEA, which has its headquarters in Singapore, has seen rapid growth since it was established in Asia in 1984. lt opens over 13,000 case files annually in the region of which 3,200 are medical interventions of which more than a third require medical evacuation whether on board helicopters and air ambulances, commercial airlines or ground transportation.

Much of AEA's success in China, according to Funk, has been based on its close working relationship with the Chinese authorities. "lf we have to evacuate someone out of China, we have to co-ordinate with the local Chinese authorities, Hong Kong and the country to which the patient is to be sent. We have to make sure that all the formalities, hospital arrangements and airlines are taken care of. lt is a complicated, detailed business but we are extremely efficient ... we have to be when

dealing with people's lives."

AEA has a helicopter on permanent standby in Shekou, just across the border in Shenzhen, and has an air ambulance based in Singapore. The service, however, has been able to call on the assistance of the Chinese military in extreme emergencies. "The Chinese have been gracious and very quick to respond to our calls for help," Funk said.

AEA has 12 centres, called Alarm Centres, located around the world - nine of them in the Asia-Pacific region. All are staffed around-the-clock by multilingual doctors and operations coordinators. The set-up in Asia comprises one of the biggest and most comprehensive networks in the region which means AEA can respond immediately and effectively to

the most remote corners of the region.

Although AEA provides a wide range of services,

it

is

primarily a medical organisation with 40 doctors employed full time of which 15 are located in the Asia-Pacific region and attached to the Alarm Centres.

Apart from doctors, there are medical escort teams on 24hour standby and an extensive network of doctors for patient referral throughout the world. ln China, AEA has established a comprehensive network with a 24-hour Alarm Centre in Beijing and another in Hong Kong which takes care of Southern China.

AEA is the only assistance organisation to provide outpatient facilities through the Sino-German Polyclinic in Beijing.

"As the name says, we are an assistance organisation," Funk said."Our job is to provide a quick and professional response to an emergency.

"Whether you are talking about companies or just an individual wandering off to say Nepal on holiday, what we try to do with our service is to give that little extra piece of mind."

Tbe Wardley Soutlr East Asia Trust specifically aimed

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THE WARDLEY SOUTH EAST ASIA TRUST

N

È

(J

Socialist transition in East Asia following is an edited extact of a luncheon address given by the World Bank's Vice President (East Asia and Pacific Region) Gautam Kaji at the Club on May 5.

The

the question of openness and outward orientation of the economy to global markets.

Socialist transitions in East Asia gain their distincti.veness partly from the

espite the threats of trade wars

and protectionism, we can be encouraged that international barriers to tradê, finance, and investment are lower today than at any time in recent memory. ln socialist countries, global integration has taken great strides, as once planned economies make the

transition

to

experience of their neighbours, such as South Korea, Thailand, and Malaysia, from which there has been considerable borrowing of ideas.

Three aspects stand out: * East Asian reforms, socialist or market, are generally guided by effective ness and pragmatism rather than rigid blueprints. This has meant, for example, a careful process of experimentation in a particular sector of geographic area

market-based economic

organisations and seek full participation in world markets.

The changes sweeping Eastern Europe and the former Soviet Union are revolutionary and revolutions capture our imagination. Their efforts to achieve competitive and eff icient econom ies have been launched with great urgency and determination. Radical reforms in pricing, trade and ownership are taking place at a breathtaking pace.

Somewhat less in the limelight, but equally momentous are the reforms currently undenray in the socialist econoChina, Laos, mies closer to home Mongolia and Vietnam. They have followed market oriented reforms in ways that are different from each other and from the East European experience.

-

-

China, which accounts for a fifth of humanity and four times the population of the former USSR, has been reforming in measured spuns for more than a decade,Vietnam, confronted with the collapse of Soviet assistance, has

launched a more rapid programme of adjustment and reform. Mongolia and Laos have also adapted to the end of Soviet assistance, but at different speeds

and with their own priorities.

The diversity of socialist traditions around the world and within Asia invite comparison and evaluation. Debates on the merits of "big bang"versus gradualist approaches appear almost daily.

There is an understandable need to seek resolution of ditficult questions: Which is the proper course, the most desirable pace, the most effective sequencing for socialist reform? What, in

22

TIJE CORRESPONDENT

JULY

1992

before wider application. On the other hand, cautious decision making in some

Gøutøm Kaji light of the European and Asian experience, is the best way fonvard?

My own view is that it would be premature to pronounce on the universal applicability of shock therapy or gradualism; indeed, such a time may never come. What the East Asian experience tells us is that an approach incorporating elements from different models and adapted to country circumstances can

deliver impressive results in terms of efficiency, competitiveness, and equity.

Those are key goals of socialist reform

everywhere. ln East Asia the pursuit of those goals

has required difficult, timely, even unpopular decisions, and a willingness to persevere with reforms.

The quest for efficiency and productivity gains is not confined to socialist countries; it is only more urgent there.

East Asia's market economies have, and some continue to grapple with, similar

policy issues. At the centre of the reform effort, whether in a socialist or market context, has been the problem of defining the roles of state and market.

lntimately connected to that issue is

instances has meant delays in addressing difficult issues, such as in the vital industrial area of state enterprises and financial. * East Asia's socialist economies, like their more. capitalist neighbours, have made reform pay, with the achievement of an enviable track record of economic growth performance. These achievements provide a sound foundation and

-

a strong measure of confidence for tackling the next phase of reform. This will entail difficult, complex interuention in such areas as the financial sector, state enterprises, and trade policy. * The links between East Asia's econoand the mies socialist and market global economy are not incidental, but vital to their successes to date and their future progress. The benefits of outward orientation, a hallmark of East Asia's economic success, are as well understood in Beijing and Hanoi, as they are in Seoul and Bangkok.

The flexibility and pragmatism of East Asia's reform policies has meant ex-

-

-

perimenting and then disseminating successful approaches, or as the Chinese put it, "feeling the stones while crossing the river" rather than "jumping the chasm in one leap". Considerable

weight is given to maintaining stability and order in the economic and social fabric. This is highlighted by the Chinese experience of liberalising the economy in waves, beginning with far-reaching changes in agriculture. ln starting with agriculture and the rural sector, the Chinese capitalised on favourable initial conditions for reforms.

Rural infrastructure and rural services were well established under socialist management, and peasant producers were well organised, if not well motivated. This meant that once a functioning price system and household incen-

tives were introduced, productivity increases could accelerate. After some experiments in selected localities, re-

forms were extended in stages to all provinces. They gave households a stake

in land and its productivity. This approach of household responsibility and long{erm leases of land achieved

-

-

what the privatisation of land is intended to do, but without as much upheaval.

Agriculture has been the dominant

sector in all of East Asia's socialist economies, and was a natural starting point for reform. Vietnam also saw an exceptionally strong production response

to agricultural price liberalisation, more secure land tenure and market-based exchange rates. Laos also conforms to this pattern of a vigourous, reform induced supply response from smallfarmers.

The experience of both socialist and market economies has shown that realigning the role of the state and market in the pursuit of efficiency in the enterprise sector is complex. For the socialist economies the problem is magnified.

There, state enterprises occupy a dominant position in terms of manufactured output, allocation of credit, and as a source of employment.

China's approach to the state owned industrial sector has been twofold: to promote a rapid growth of the non-state sector, and to increase the "commercialisation" of state enterprises. These policies have had their most dramatic effect on the growth of town and village enterprises and joint ventures with foreigners, so that now the non-state industrial sector amounts to about 45% of

Shenzhen : An exømple of Chinø'|s economic achievement. industrial production compared to 15% eight years ago. The result is the attrition of the state sector in relative terms, postponing the difficult, and inevitable measures associated with the sale or dissolution of loss making public enterprises. Yet, the impact of the still large state sector is peruasive in terms of inefficiency, and its drain on public resources and the health of the financial

system.

The pace of state enterprise reform

will impact directly on pricing policy, financial reform, trade policy, labour mobility and wages, and housing mar-

kets. lt should not be forgotten that state enterprises still provide a wide

were comprehensive and bold particularly pricing. State controlled prices were eliminated almost lotally for agricultural products, such as rice, and for the outputs of state enterprises. At the

-

same time, the exchange rate for transactions with convertible areas was unified and subjected to market forces.

And interest rates were increased, so Ithat most deposit and lending rates became positive in real terms. The key challen(¡e remains the development of the private sector markets along with the reform of state enterprises.

Like China, Vietnam has largely deferred decisions on state enterprises, preferring to stimulate growth of private

range of subsidised social services to their employees, from health and education benefits to pensions and unemployments insurance and housing.

For the 100 million people employed

firms.

The dramatic success of East Asia's

in the state sector, any reform pro-

The results of China's reforms are

gramme in China must undertake par-

impressive by any standards, whether socialist or market. On a recent visit to Guangdong and Shandong provinces, I was reminded, of South Korea in the early 1970s.'ln/fact, it occurred to me that these provinces might outdo even the spectacular record of South Korea in economic development. But the achievements are not confined to the coastal provinces. The majority of inland provinces are expanding as well,

allel efforts to assure some continuity in basic social services as these are delinked from the state enterprises.

The macroeconomic setting has been the target of much of Vietnam's reform effort. The authorities had experimented with different reforms throughout the preceding decade, but 1989 was a watershed year as Soviet assistance was withdrawn. The reforms introduced

market economies is well known. Asia's

socialist economies in transition have also vastly improved their performance.

THE CORRESPONDENT JULY

1992

23

albeit at slower rates. For the country as a whole, during the 12 years of reforms, there has not been a single year of

declining income, while many other socialist economies in transition have suffered declines in per capita income of 20-301". True, there were occasions in the late 1980s when China's macroeconomic stability was threatened, and inflation was creeping up, buttimely, corrective measures have subsequently kept inflation in check.

It is also striking that many of the coastal regions now at the forefront of China's development effort had per capita incomes below the national average before the onset of reform. The country's population in absolute poverty has come down from about 30% at the beginning of reform to less than 10% now. Following the tremendous reduction in the incidence of poverly in the

first half of the reform period, there

-

is

in

100 people has quadrupled. China's achievements in basic health and education compare favourably with many industrial countries.

Vietnam's success, although not as broad based as China's, is also remark-

able. The reform-induced supply response of the agriculture sector, transformed Vietnam from a rice importer to a net rice exponer in the space of one year. Overall, exports to the convefiible area more than doubled between 1988 and 1989, to US$1 .3 billion. With its low

wages and high literacy, Vietnam has excellent prospects for the export-led

JUI.Y

larly in the rural areas and in the agriculture sector. The economy grew by over137o in 1989 and 6.6% in 1990.

Much would have been manageable on the broader reform front if an appropri-

Í

are reflected in the material standard of living. ln 1981 there was less than one colour television set per 100 urban households but by 1990 there were 59.

The average housing space for rural dwellers has more than doubled since 1978, and the number of bicycles per

TH.E CORRESPONDENT

rendering sound economic management difficult. Whatever else is being done in

other spheres, saving, investment and allocative decisions must be seriously distorted in such a macro environment.

ate level of external assistance had As an illustration of Vietnam's low

modern history. These income gains

24

tinued at very high rates of 60-70%,

Asian countries.

Laos too has registered impressive economic gains,as the impact of price decontrol, devaluation and other macroeconomic policies was felt, particu-

materialised.

nowevidence of stagnation onthis score.

There are areas of concentrated poverty in the lagging regions in China, and some evidence of worsening health conditions among vulnerable groups.

Aggregate statistics reflect tangible improvements in people's lives. Surveys confirm per capita incomes have a doubled since the reforms began

rate of progress unprecedented

growth pattern typical of many East

1992

The sociølist reþrmers of Asia should seekfurther gains from the proximity of dynamic neighbouring economies such as Hong Kong and Taiwan with new ínitiatives to liberalise trade and investment policies. I

level of assistance, consider that in 1 990 the f lows of total official capital provided

to such countries as Poland, Bulgaria, Romania and Laos ranged from 36% of total imports to 53%. Vietnam, by contrast, received only 6%. As one of the poorest countries in the world and with

Socialist economies in East Asia have made great progress, butthey also have

the quality of social and economic infrastructure in decline, the trickle of development assistance and the absence of macro stability will certainly undermine reform initiatives and could erode the foundations of Vietnam's long-term development potential.

The second prerequisite for progress

quite a distance to go in raising com-

on the state enterprise reform issue is

petitiveness and efficiency. They have

increased outward orientation. This can make a great difference to the efficiency not only of the state enterprises but of the entire economy.

A crucial'advantage enjoyed by China (and Vietnam) is the proximity of dynamic market economies blessed with abundant capital, sophisticated financial infrastructure, and a network of contacts and families in the region and globally to facilitate investment in trade.

The socialist reformers of Asia should seek further gains from the proximity of dynamic neighbouring economies such as Hong Kong and Taiwan with new initiatives to liberalise trade and investment policies.

a solid track record of growth and equal-

ity built on. But the time has come to press ahead with wide-ranging reforms.

It seems that in the current phase of reforms in China and Vietnam, all roads lead to state enterprises. There are, however, two impoñant enabling conditions that need to be in place in order for state enterprise reform to go forward.

First, the stability of the macroeconomy must be assured with access to ade-

quate external finance. Second, the outward orientation of the economy must be more deeply established.

A realistic financing plan is essential

for macro stability and reform. The country's leadership must first commit to macro stability as a basic development goal and as a precondition for socialist reform.

China's experience suggests that even

a moderate amount of foreign assistance can promote such stability,

if

appropriate policies are being followed.

Vietnam, on the other hand, demonslrates that lack of adequate and timely financing inhibits progress. Despite initial success in 1989, inflation has con-

China is negotiating to resume its status as a party in GATT. lt is also moving to rationalise and increase the transparency of its import regime. lt has benefited immensely f rom the open world trading system and has managed to increase its exporls at a rapid rate. lt

now has healthy foreign exchange reserves, which should enable it to be not just bolder in import liberalisation

-

for the sake of fair play in the world trading system but'most importantly for

efficiency at home. A greater outward orientation would help China increase its capacity to acquire and assimilate modern technology. lt will also bring greater competition and efficiency to its enterprises and it will provide an important yardstick to determining the appropriate pricing policy in the economy.

Joint enterprises, particularly in the financial sector, will have the additional benefit of facilitating the enforcement of hard budget constraints on state enterprises. lndeed, weaknesses in the state financial sectorhave been a majorsource of excessive credit expansion and enterprise inefficiency.

Global economic integration is an important trend of our times. We in the World Bank believe that the integration of China and otherAsian socialist econo-

mies in the world economy will be beneficial not only for them but for the world community. The next steps to achieve this integratiôn and to expand the scope of reform will perhaps be the most challenging phase in East Asia's socialist transition. There is no established road map to follow, because the trans-

formation on the scale envisaged has no historical comparison. Froni my per-

spective, this is not the time to offer

But there can be little doubt that fur-

ther postponement of several central issues may well shift the established

reiterate the nettles that must be grasped

by East Asia's socialist reformers in the months and years to come: * Reform, commercialisation, and where appropriate, privatisation of state enterprises must enter an activist phase.

State enterprises, both financial and industrial, are at the heart of a number of persistent problems in the macroeconomy and undercut the effectiveness of other reforms. * Housing and social security reforms, particularly for China, are linked to progress on the state enterprise front and require parallel action. * Trade and investment policy, including liberalisation of the import regime, must continue the shift towards outward orientation of the economy. This

all thø raj

priate level of foreign financial flows is

reform, with financial and technical help.

While our level of lending to the socialist

agenda. Some will want to test out options and will be tempted to proceed very cautiously.

It's

achieved.

For the international community there are also critical decisions, especially action in the financing area. An appro-

transition.

There is, however, no escaping the economic fundamentals of efficiency which applyto socialist or marketeconomies, large and small. ln the distinctively Asian approach to socialist re-

acceptability, and policy co-ordination will present reformers with a daunting

Thø Pøninsula.

dynamism and increase the benefits of global economic integration already

essential for sustaining progress

bate. lnstitutional constraints, social

at

will further the spread of economic

overly confident and rigid prescriptions.

There is as much to learn as there is to impart at this stage of Asia's socialist

form, great progress has been achieved by extracting gains from where they are most likely available. The path ahead will be far more complex. The step by step philosophy will have ceded ground to more concerted, simultaneous action on multiple fronts. These decisions will bring into sharper focus the efficiency and equity aspects which will surely engender more intense domestic de-

T,,,n

pragmatic approach from the status of virtue to that of a vulnerability. Let me

in

countries undergoing socialist reform.

The World Bank, for its part, stands ready to assist in the next phase of

reformers of Asia will probably exceed US$2 billion this fiscal year, our technical input will be an equally important contribution. There we can assist decision makers to analyse the interlinkages among multiple policy issues, to help crystalise options and tradeoffs, and to draw some inspiration and even comfort from the experience of their more market orientated neighbours. As the socialist reformers seek to emulate the economic outcomes of the fastest growing economies of the developing world, we can perhaps help communicate the more valuable lessons, and hasten the way forward in East Asia's transition from plan to market.

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25

PEOPLE

Diplomatic exchange.....

On Møy 26 the Club held another of its successful cocktøil pørties to meet memþers of the diplomøtic corps, senior Hong Kong Government ønd Xinhua offtciaß.

,

Secretary for Monetary Affaìrs, David Nendick, obviously said something amusing to RogerThomas. It even amused the lrish consul, D A Marron

Stuart Wolfendale imparts words ofwisdom to Financial Secretary

Five correspondent members of the FCC visited North Koreq recentþ to celebrate Kim II Sung's birthday. The Greqt Leader turned 80 and the country had been celebrating for months. Durtng their trip through North Korea they visited ø fake priest, who had never heard of the crucffixion of Christ, ø føke depørtment store, a real highway but without c&rs and ø so cqlled art factory in downtown Pyongyøng, According to the mønøgement the føctory employs 2,500 peopte and its two hottest selling products are paintings of Kim Il Sung (and his son, the Dear Leader), all in a very promising export product", according to the Socialist Realistic style and huge stqtues of the Greut Lssfl¿¡ m&n&ger. The picture shown above was taken with North Korean soldiers øt the DMZ near Panmuniom and shows, from left to right, Philippe LeCor¡e, Mørinne Phil, Gerhørd Joren, Han Vriens and'Steffan Heimerson.

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'TIJE.

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JULY

1992

Te.lzBT7.ff73 GlÍ

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TRIO'S RESTAURANT & LOUNGE lonc D'Agullor Stnot C¡ntml Hong Kong

(L-R) Sung Soo Park, Korean Consul, and Chieu, Chee Phoong, Hong Kong correspondent for Lianhe Tnobao in Singapore

THE CORRESPONDENT

JULY 1992

27

Farewell old friend

Friend's say goodbye to Ian Witson at Slough on June I ' His wife ional Lifeboat Institution, W est hich was read at the service' tell you that he had strong opinions

ynne and lan sPent 19 Years together. TheY met in Ottawa' both working for the same

about most things.

He sought quieter moments in a solitary way. He was an insatiable reader and would escape for hours into books and was very mainly non{iction

newspaper. When lan was sentto Saigon

as a photographer with United Press

- followed his -proud that his son had

lnternational in 1970, he wrote to Lynne

asking for her hand. Her telegraphic

habit.

response from Ottawa got mislaid due to floods around DaNang, and both

lan was a verY creative Person who

ought to have been born during the

spent a couple of weeks wondering if the other had changed their mind' After a year in Vietnam, theY moved to Hong Kong where theY sPent the in full. lan had happiest of years - eight left him' never that East Far of the love a He admired the strength and self esteem of the Chinese; he enjoYed the many kindred spirits he met coverlng Vietnam, Cambodia, and the rest of Southeast Asia, both out on asslgnment or at the Hong Kong Foreign Correspondents' Club' Many a long hour was spent arguing and debating the

IønWilson you needed anything, and it was within his power, he would give it to you. His

if

love of animals was well known. His favourite cat Ozymandius passed away

earlier this year at 20 years old; lan

most recent Political crisis.

Their son Nicholas was born when they moved to South Africa, though it is purported that a tattooe on the soles of his feet saYs: 'Made in Hong Kong" From South Africa, brieflY back to Hong Kong where the cost of living had risen too high to be able to remain there, and then to England, where the three of them spent 10 Years together.

Nearly two years ago lan left the cold winters of England for the sunny climes

of Cyprus. lan was a very private person and few

people were able 1o reach beyond the cynical brusque front.

He was an incredibly kind and generous man. He cared deeply about people:

he helped a Vietnamese family set up

home in Hong Kong after theY lost everything in the fall of Vietnam; he

always called him a scholar and a gentleman of cats. lan was concerned about PeoPle green and environmental issues did not hence his commitment interest him

the Royal National

Lifeboat helpvolunteers group of lnstitution, a terms. practical positive ing others in But he was forever troubled bY his own inability to help do anything about the horrific things that he had to film wars, riots, famine' over the years

towards

death. He was continually

eafthquakes, frustrated by the frailties of humanity' PerhaPs because of the visions of human misery that he had seen through a camera lens, lan had a cynical view of life and did not suffer fools. ln professional relationships, if he felt the other person couldn't do the job, he wbuld tell them in no uncertain terms to

helped send a solicitor to Nepal to seek the release of a friend from prison there;

... remove themselves. AnYone who tried to have an argument with lan will

Renaissance, using his talents with the benefit of a Patron of the Arts.

He took great Pride in his work, and was not just acameraman, but an IMAGE GATHERER. A friend recalls a funeral he filmed many Years ago in Soweto; seeing the evening approach, he filmed the final burial in silhouette against the setting sun. Another recalls poignant scenes lan filmed of sad children in an orphanage in Poland. LYnne remembers the Christmas they loaded his suitcases with sugar, flour, soaP, chocolates and small toys for him to take with

(L'R) Teil Thomas, Scøttering lan Wilson's ashes in to the Lamma Channel Peter Berry Lockhart, SsuI and Atlison Es, Van Annìe ønd Hugh Døvìd Gariia, and Kenneth Cheng.

Sheraton Offers Half Price to FCC Members with butterflies, monkeys decided you have had

him on assignment to Poland so he could distribute them to needy people

and tumbling waterfalls

28

THECORRESPONDENT

JULY

have

he met.

For many years the adrenalin had run when the bulletins flew' But after Terry Waite was captured, and Beirut ceased to be a safe Place to go to, lan seemed to have a greater feeling of vulnerability.

He had alreadY seen a number of his friends meet their fate while covering news stories. He told a friend he would no longer go to anYwhere that began Beirut, Belfast, Brixton. with the letter B he a dream formulate He started to

-

be able lo finish an assign-

wanted to ment and then return to his own bar by the sea- Lynne called him her Shirley Valentine. He stafted to create thatdream in Cyprus, but the situation didn't work in his favour.

It was in Cyprus that lan finally found his peace.

tropical gardens on thesoutherntþofBali, away from the of Kuta and Sanur but still only a short drive from the "r*ud. ;irù. Amenities include tennis and the full gamut of water December 20' 1992. sports. There is a nearby championship

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THECORRESPONDENT 1992

if you

your fill of golf, tennis, water sports and

JULY

1992

LETTER FROM THE PRESIDENT

Think about it

Now for something completely different

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F.C.C. members represent one of the highest earning, per-capita, consumer spending groups in Hong Kong.

F.C.C. members are generally decision makers who decide WHAT to buy for their companies.

THE, CORRESPONDENT is a controlled circulation publication, reaching all members plus their families.

Complimentary copies are mailed to other key figures in the city.

Bonus overseas mailing of 900 copies.

any people (well, two to be exact) have asked me what policies will be followed by the new regime recently installed at the Club following our version of what the lndonesianS call a "Festival of Democracy".

After careful consideration and consultation at the highest levels, I am now in a position to say that we shall most definitely be committed to prosperity and stability, and that under no circumstances will the new Board tolerate discussion of its policies or argulnent with decisions taken by the democratically

elected champions of the struggling

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masses as personified in the membership of the club.

Although these conditions for the governance of the Club are not laid down in the Basic Law, it is clear to me that they are entirely in the spirit of the admirable document.

Itrust also that members will note that the FCC's Festival of Democracy did

We are still liaising with both London and Beijing about where to place the various electrical sockets, but I can assure you that this magnificent addi-

tion to the Club's premises will be up and running by the end of August.

There has been some loose talk about the award of. contracts for this major

project.

I can

only say that we are

following the "open playing field" policy, which means that any, I repeat any, British company can apply. There has

been some special pleading for the inclusion of tenders from

a

country called

Germany but I have made it clear that this breaches the spirit of fair competition. ln addition one cannot help mentioning that the last time these chaps were contenders, viz 1939-45, they did not exactly cover themselves in glory.

For the first time in its history the FCC

has acquired a piece of property. We

are now the proud owners of some 1

,000 square feet of office space in Lan

Kwai Fong. This will be used for both administrative staff and storage. I have it on reliable authority that our intervention in the property markef has transformed the situation in Central.

A fellow called K. S. Li called me the

not extend to the unnecessary extent of having more than one candidate standing for the positions of President and Vice-President of the Club. This mature decision of the membership is, I feel, part of our preparations for the 1997 transition to Chinese rule. Our friends across the border are well experienced in elections and we have much to learn from them.

Meanwhile, it passes to me to inherit the major programme of works which remains as a legacy of what will soon be described as the Seidlitz Era. Members will recall that the programme represents the FCC's contribution to creating prosperity and stability for all those who

persuaded to give the people what they want. Thus, not only are members now

sail on the good ship Wilson, now re-

able

named HMS Patten.

Following the visit of Prime Minister

Vin Heinz and once again consume

Major to Beijing, we were able to get the

go ahead for the building of a $7 billion press centre in the basement.

otherday asking foradvice on the market; I'm afraid I had to tell him that the price for advice from the FCC was well out of his league.

Meanwhile, an action packed programme is promised for the coming year.

Despite the Board's understandable reluctance to pander to the member-

ship's every whim, we might just be

to munch happily on designer sandwiches, drink alternatives to the Italian food on the Veranda, they can also feast their minds on the intellectual feast of activities emanating from what

is loosely described as the professional committee's sphere of activity.

We seem to have had a result in hastily putting togetheran evening where the BBC's coverage of the Thai democracy demonstrations was shown and discussed. All the television bureaux in town are now being contacted with a view to holding more evenings of this kind. The idea being for members to be able to see and discuss broadcast and non-broadcast film of current events.

Talking of current events, the Board has sent strong letters of protest to both

the Thai and Chinese governments, concerning the treatment of journalists.

There cยกn be no excuse forthe way that working journalists were beaten up and threatened in the course of their normal journalistic duties. ln Beijing a Japanese television journalist was sent to hospital for treatment as a result of the beating he received from Chinese police.

There are fears that a number of Thai

journalists were killed by the army recently in Bangkok. We can only offer our solidarity with colleagues who are faced with these appalling difficulties and hope that by making enough noise,

governments will be deterred from behaving this way in future.

To end on a less serious note. Should any member have any complaint or suggestion, please do not hesitate to keep it to yourself. However, in extreme cases let me know. I should point out that no one is discouraged from saying nice things about the Club or its management. I realise that this breaks a long standing taboo but some taboos were definitely made to be broken.

Steve Vines THE CORRESPONDENT

JULY 1992

31

I I

The SLRc

fromadiffere

PERSONALLY SPEAKING

All this talk about drink t has not been made clear to me whether this column is supposed to be earnest and serious orfrivolous, even flippant. So let me try to combine the factors, and see what happens.

Serious: how about Queen Victoria, whose bronze statue still adorns Victoria Park, having been recovered from Japanese looters. Now, looking around

the FCC bar, I do not have to go into

detail about Queen Victoria: some members must have known her. After all, she didn't die until 1901. Mind you, those FCC members must have been children at the time.

The reason for mentioning Queen Victoria is because of her attitude to the demon drink. I had always been under the impression that she was strongly opposed to it. But apparently not. According to something or other I read aeons ago, she was not averse to a sherry or two before dinner, a glass of wine and goodness knows what else after dinner, while the men sat over their port. This is sort of borne-out by a letter she wrote, which I have only just discovered a letter from Queen Victoria to her then Prime Minister, Gladstone. lt does not sound very exciting to begin with, the appointment of some

-

long forgotten Canon to Westminster Abbey. Obviously grudgingly, the Queen

approves the appointment, but added a condition. "He should not, when preaching at Westminster, use the very strong total abstinence language which he has carried to such an extreme hitherto.

Total abstinence is an impossibility; and though it may be necessary in individual cases, it will not do to insist upon it as a

general practice ..."

I can think of a few of those individual cases in the FCC. Which reminds me, I mean, nothing to do with the individual cases, but I see that the red-lips brigade

32

THECORRESPONDENT

JULY

1992

have recaptured their pole position at the strategic corner of the main bar as you come in, after some months when ordinary mortals dared to occupy those hallowed or should it be hollowed bar stools.

-

-

All this talk about drink, alcohol, call it what you like, is because a week or two ago, after a quiet lunch with my dear wife, we invited a couple of friends over from the bar for a digestive coffee and liqueur or whatever. By that Grace of

God that looks after senile journalists like me, my wife used her card to pay the bill, so scribbled her signature and dashed back to work: well, somebody has to work to maintain me.

Thank goodness I did not sign it, or there would have been those domestic

system may have been.

I

also hanker for the days when every

newspaper, radio, television or whatever did not split infinitives. lt seems to have become a recent obsession: all Hong Kong English-language newspapers and the sub-editors on the RTHK

recrimination sessions: you know, " Why

newsdesk seem to have caught the same virus. Perhaps it is something like influenza. Certainly it gives me pain: although nothing compared to the physi-

didn't you check the thing first; do you think we are made of money? etc. etc."

The point is that our two friends had

cal pain inflicted upon my backside in successive schools when I was found guilty of this heinous crime. Perhaps

an armagnac each, but our magical

that is why the current practice makes my bum tingle.

For solace, I looked up Fowler's Modern English Usage, which is modern in the sense that it was first published more than 60 years ago. To my horror, I found that this book, still regarded as authoritative, was not at all

mystery computerised cash register, or whatever it is called, obviously has a

hiccup. We only noticed this by sheer accident while chucking out odd bits of paper. The two armagnacs had been registered as 242 armagnacs at $23, making a total of $5,566. Given the average of about 18 tots to the bottle, that would mean that my two guests would have had to consume, given my elementary mathematics, 14 bottles of armagnac during the 20 to 30 minutes we were together.

Now, admittedly, one of them is a rather ... shall we say, fleshy gent, also a member of the Board of Governors, not noted for stinting his glass. But 14 bottles in half an hour? The matter has been efficiently sorted out, as usual by Heinz Grabner, who reassured me lhat it would have been detected before the bills went out. Oh for the days when you got bar chits, cumbersome though the

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against the split inf initive, in fact seemed

positively to encourage it. Or should I say to positively encourage it. Fowler not withstanding, the split infinitive still makes my teeth grate, apart from the effect on my posterior. ldiosyncratic, I know, but could there be human life at the FCC without idiosyncrasies? lt would be a much duller

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