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Uproar over lobbying costs

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A ROW has broken out over revelations that Hong Kong has increased the amount it spends on lobbying and public relations in the United States to $11.6 million.

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The lobbying and PR work has been done in an effort to preserve China's trade privileges and boost Hong Kong's trade. In the financial year 1994-95, Hong Kong's top man in Washington expects the amount spent to rise to more than $15 million.

Last night one Hong Kong legislator, United Democrat Dr Huang Chen-ya, described the increase in budget as a ''waste'', while another, Liberal Christine Loh Kung-wai, conceded: ''It does raise questions that need explaining.'' But the Hong Kong Chamber of Trade said the outlay was justified.

Dr Huang described the extra cash for lobbying as a ''waste'', adding it should be the responsibility of Hong Kong's newly appointed ''ambassador'' to Washington, Barrie Wiggham, to promote the territory.

Dr Huang said: ''This new post will be based from our offices in Washington, and I am sure he will be talking to an awful lot of congressmen and senators during the course of his time there. We do not need two sides to do the same job.'' Ms Loh had a more measured reaction but would raise the matter with the Information Panel.

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She said: ''Does the Government envisage that much more lobbying is necessary? Mr Wiggham can do a certain amount but it depends how much lobbying is to be done.

''The main task of our Washington office has been to look at Most Favoured Nation status [MFN]. Maybe the Government is thinking of a different strategy.'' Research by the Sunday Morning Post has found Hong Kong is this year employing five separate lobbying and research firms in Washington, at a cost of more than $7.7 million. In May, Hong Kong signed a deal with the GCI company to provide public relations throughout the US for $3.9 million during the year.

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