The Foreign Correspondents' Club Hong Kong

Brexit: Triumph or Trainwreck? Watch the FCC debate here

Will Brexit be a triumph or train wreck for Britain? Two panelists went head to head to lay their cases over the divisive issue.

Left to right: Experts Anatole Kaletsky and Timothy Beardson debate the pros and cons of Brexit at the FCC. Photo: Sarah Graham/FCC

The question over the United Kingdom’s decision to leave the European Union was the subject of a debate at the November 8 club lunch, which kicked off after a show of hands in the room revealed there were more Remainers than Leavers.

Anatole Katelsky, co-chairman and chief economist of Gavekal Dragonomics, the consulting and asset management company based in Hong Kong and Beijing, argued that Brexit would be an economic disaster for Britain; while Timothy Beardson, chairman of Bixmoor, suggested that the country could thrive once it left the EU.

Beardson, first to take the stage during the debate, argued that the EU was shrinking, and with it economic opportunities: “In 1950, 16% of the world lived in countries that now comprise the European Union. Now it’s 6% of the world. By the end of this century it’s going to be 3% in the world. That’s a narrow sample for Britain to make as its economic home.”

He added that Britain had three choices when it comes to trade post-Brexit: that the country trades on World Trade Organisation rules which means accepting tariffs – “that doesn’t seem to stop trade going on”; or we can be part of a series of trade blocks; “or we could say we’re going to have no tariffs. That would be aligning our trade policy with the consumers, not the producers – an interesting idea that might go down well with the voters”.

Beardson added: “The European Union is very committed to protectionist measures. It abhors the primacy of U.S. and British financiers in global finance. It would like to tilt the playing field to prevent that.”

And Brexit was “ultimately not an economic question, it’s a political question, it’s a cultural question. Does Britain want to be part of an ever closer political union with Europe? And the answer is most people don’t want that. European advocates like to say it’s all about economics but it’s not. Economists can have all sorts of different opinions about Britain’s move from Europe to a wider world, however, ultimately it’s a political decision. Economic issues don’t matter very much.”

Katelsky began his pitch by agreeing with the point made by Beardson: that Brexit was not just an economic issue, it was a cultural and political issue too. “Politically, I think Brexit is a very dangerous phenomenon because it was a protest vote – perhaps a justifiable protest vote – but about all kinds of issues, many of which had no direct connection with world trade, protectionism, the relationship to Europe or to the rest of the world,” Katelsky said. “They had to do with the health service, education, with housing, with regional policy – none of which have any connection with European policy.”

He added “the great danger and near certainty of Brexit” was that it would not deliver any solutions to the disquiets felt by the British population, and that subsequently “at the end of the process even if it does go well it will leave more anger and more dissatisfaction than less”.

And the country would ultimately not “take back control” – one of the slogans used by the Leave campaign – because reduced tariffs would lead to more competition and less regulation, he said.

Socially and culturally, Katelsky said Britain, “which has been throughout my lifetime, the most successful multicultural society in the world” was now somewhere many who, like himself had not been born there, now felt unwelcome. Katelsky said that as a result he had applied for a Polish passport. He said this sentiment was felt across the country and was partly fuelled by Theresa May’s citizens of nowhere speech where the British Prime Minister said: “…if you believe you’re a citizen of the world, you’re a citizen of nowhere”.

Economically, he said that since 1992 Britain has had the best performing economy – of the G7 economies – in the world in terms of GDP. He said this was due to two factors: the completion of the single market program; and Black Wednesday, when Britain decided to detach its monetary policy from that of Europe – meaning it got the full benefit of trading in the single market in Europe, causing “enormous growth in the service industries”.

So for the last 25 years, Britain has been able to have its cake and eat it, Katelsky added.

The only two realistic options now would be for Britain to reverse the decision of the 2016 referendum result, which was unlikely; or that it would remain in a “permanent limbo” during the so-called transition phase where it would still enjoy the benefits of single market access but would also still be subject to free movement of people, he said.

Duterte’s Violent Populism: Why Filipinos support the man who “out-Trumps Trump”

Filipinos support controversial President Rodrigo Duterte despite many fearing that his bloody war on drugs could target them, said an expert on politics in the Philippines.

Mark R. Thompson shared insights into the presidency of Rodrigo Duterte. Photo: Sarah Graham/FCC

The tough talking president and former lawyer has drawn criticism from human rights advocates for his open encouragement of the extrajudicial killings of drug users in the country. Prof Thompson said it the number of deaths so far is unclear but that it is certain to be more than the 3,000 killings that took place during the last year of Ferdinand Marcos’ presidency. Human Rights Watch puts the number at more than 12,000. Duterte offers cash rewards to police who carry out the executions which human rights groups like Amnesty International have pointed to as an economy of murder.

Duterte swept to power in 2016 because he was straight talking, and his pledges to clean up the country’s drug problem resonated with so-called ABC voters – the elites, upper and middle classes. His election came after a succession of tumultuous presidencies in predecessors Ferdinand Marcos (1965-1986), Corazon Aquino (1986-1992), Fidel Ramos (1992-1998), Joseph Estrada (1998-2001), Gloria Arroyo (2001-2010) and Benigno Aquino III (2010-2016).

Mark R. Thompson, professor and head of the Department of Asian and International Studies (AIS), told the November 7 club lunch that Duterte’s approval rating was currently at around 80% – much higher than his American counterpart Donald Trump’s 35%. Unsurprisingly, this was not the only comparison between the two men. “Duterte out-Trumps Trump in terms of his language,” he said. “He’s willing to say things as they are and this gives Filipinos a sense of authenticity.”

For many Filipinos, this state violence has created a sense of political order amidst weak institutions, he added.

Duterte famously called former U.S. President Barack Obama the “son of a whore”.

When he took office in 2016, Duterte openly broke with liberal reformers to declare his violent crackdown on drugs. Estimates at the time put the number of drug users in the country at 1.8 million of the 100 million population. Duterte later revised this figure to 3 million.

Prof Thompson, author of The Anti-Marcos Struggle, said most of the drugs are likely to come from China, and that in a recent case the Chinese authorities tipped off the Philippines to a smuggling ring that it was claimed was linked to Duterte’s son, Paolo.

Relations between China and the Philippines have in the past been strained amid court actions over the sovereignty of islands in the South China Sea. However, Duterte was quick to publicly realign himself with China as he cooled his relationship with the United States.

Despite moves to intimidate his opponents at home and abroad – the Commission on Human Rights has become a target, with Duterte threatening to abolish the Philippines’ National Human Rights Institution (NHRI) – Prof Thompson believes that the country is not yet an authoritarian state. “The press is largely uncensored,” said Prof Thompson, co-author of The Vote in the Philippines: Electing a Strongman. “Courts are not yet officially gagged but they are intimidated.”

September 23, 2017 Board minutes

Income Statement – September 2017

From Banker to Buddhist Nun: Emma Slade on her journey to enlightenment

A former high-flying banker who became a Buddhist nun after being held hostage spoke of her journey to a life dedicated to helping those less fortunate.

Emma Slade, standing in front of a photo from her days as a high-flying banker, told FCC members about her journey to becoming a Buddhist nun. Photo: Sarah Graham/FCC

Emma Slade was a Cambridge Graduate and international banker – based in New York, London and Hong Kong – when, during the height of the Asian debt crisis, she was taken hostage while on business in Jakarta.

The terrifying experience of being trapped “in a room with a man with a gun” was traumatic, leaving Ms Slade feeling a “complete loss of control over my life and my body”. After returning to her banking job, Ms Slade suffered flashbacks of her ordeal and to cope she immersed herself in yoga. This was her first step towards Buddhism and a journey on a path that led her to Bhutan where she was granted permission to study to become a Buddhist Nun.

After more than three years of practicing Buddhism with her Lama, she became the only Western woman to be ordained in Bhutan. She then founded a charity – Opening Your Heart To Bhutan – to help disadvantaged children, and has written a book of her life story, Set Free: A Life-Changing Journey from Banking to Buddhism in Bhutan. All proceeds from the sale of the book will go to the charity.

When asked by a guest about the commitment of becoming a Buddhist nun, including taking a vow of celibacy, Ms Slade said: “Individual desire is not really part of a nun’s existence. You’re dedicating your life to others absolutely 100%.” She added that she had felt a “ravenous hunger” for spirituality and said there was “absolutely nothing I miss” about her former high-flying life. “For me, I have gained so much and lost nothing,” she said.

Ms Slade joked about taking a vow of celibacy, saying: “My mum… is quite a character… one of her friends said ‘Celibacy? You’re very young to be celibate’. And my mum said ‘You know, this is much better because she was useless with her boyfriends’.”

Earlier this year, Ms Slade’s work in Bhutan was recognised in her native United Kingdom with the Point of Hope Award, presented to her by Prime Minister Theresa May.

Ms Slade talked of her hopes that mental wellbeing will increasingly take centre stage as an inspiring and important subject and believes the tools – or Buddhist principals – of mindfulness, compassion and renunciation can play an important role in mental wellbeing and freedom.

Censorship: How China is tightening its grip on Hong Kong

Hong Kong is feeling the creeping hand of censorship from President Xi Jinping as he exercises a tightening of control over the city and mainland China, said expert Jeffrey Wasserstrom.

Jeffrey Wasserstrom spoke about how censorship works in China. Photo: Sarah Graham/FCC

The disappearance of the Hong Kong booksellers, the silencing of previously vocal critics of China, and the flooding of pro-China posters around the city during the 20th anniversary of the Handover celebrations are all signs of tightening control, said Wasserstrom, Chancellor’s Professor of History at the University of California at Irvine.

During his appearance at the club on November 3, Wasserstrom detailed censorship in China through the decades, outlining how traditionally Communist Party leaders had swung between a tightening and loosening of control over the information people shared and received. He told how in the era of Deng Xiaoping, Chinese citizens were not free enough to publicly criticise him, but they were not forced to praise him either. He said in the 1990s political jokes were rife, with citizens allowed to be apolitical, with less pressure to express their loyalty.

But the era of Xi Jinping and “his elevation in status” has not only seen a crackdown on freedom of expression and information, but also increased pressure to praise China’s leader or risk being seen as disloyal, he said.

And he warned that a general concept that, until now, applied a different set of rules to Hong Kong was coming to an end. Wasserstrom described how, rather than One Country, Two systems – the framework around which Hong Kong will be reintegrated with the mainland – there had been One Country, Three Systems. He explained this as one set of rules applied in Tibet and Xinjiang; a second set of rules applying to the mainland; and a third set of rules that allowed Hong Kong media to freely report on issues including the pro-democracy movement. But the case of the missing booksellers, along with a push for a China-approved national curriculum, was a sign that this third rule no longer applied to Hong Kong.

The event, titled Xi’s Dreams, Orwell’s Nightmares: Censorship in Today’s China, compared the dystopian visions of writers George Orwell and Aldous Huxley to make the point that China’s censorship campaign is two-pronged: it blocks information coming in but at the same time bombards its citizens with the propaganda it wants them to see – “a culture of distraction and entertainment”. While Huxley’s Brave New World was seen as a critique of capitalism an imperialism, Orwell’s 1984 had much darker undertones.

Wasserstrom also touched upon a recent article by journalist Louisa Lim, who commented on new research on the effects on China’s censorship on its young people which revealed that many of those who were given unlimited access to the internet failed to use it. The report quotes American writer Neil Postman: “What Orwell feared were those who would ban books. What Huxley feared was that there would be no reason to ban a book, for there would be no one who would want to read one.”

He noted the increase in China-centric posters around Hong Kong suggested efforts to spread propaganda had become more obvious, and said future signs to look out for would be banks in the city using the Belt and Road Initiative to promote themselves

Referring to Hong Kong and the silencing of some well-known anti-establishment figures, Wasserstrom used the metaphor of the canary in the mineshaft: “One other thing that can happen to a canary is it can find it possible to keep breathing but is unable to sing,” he said, before adding: “We need not just to keep watching the dramatic moments when the canaries disappear and die, but when they stop singing.”

Amnesty International investigating possibility of genocide in Rohingya crisis

The persecution of the Rohingya people is a humanitarian crisis, but evidence is yet to determine whether genocide has occurred, said Amnesty International’s Southeast Asia and Pacific regional director.

Dr James Gomez talked about the Rohingya crisis at the FCC on November 1. Photo: Sarah Graham/FCC

Dr James Gomez told members attending a club cocktail event on human rights crises in the region that evidence had so far shown the systematic burning of Rohingya villages in the Rakhine region of Myanmar, and that women and children were separated and some subjected to rape. However, reports that men and boys of fighting age were taken into forests and executed were still being investigated.

Dr Gomez said genocide was “a very technical and legal term” and that satellite imagery was being used to determine whether there were mass graves in forest areas.

The displacement of the Rohingya, described as the world’s most persecuted people , and made up mostly of Muslims, is the biggest crisis currently facing the Asia Pacific region. Since violence broke out in northern Rakhine state on 25 August this year, when militants killed government forces, Myanmar’s military has launched a “clearance operation” that has been described as ethnic cleansing, resulting in the deaths of more than 1,000 people. It has also forced 600,000 to flee their homes and seek refuge in neighbouring Bangladesh.

Nicholas Bequelin, Amnesty’s regional director for East Asia, spoke about China’s role in the crisis. Photo: Sarah Graham/FCC

Myanmar refuses to recognise Rohingya as citizens, and places restrictions on their freedom of movement, access to medical assistance, education and other basic services. The de facto head of Myanmar’s government, Aung San Suu Kyi, has been criticised for remaining silent on the militia campaign against the Rohingya.

Amnesty International, a non-profit organisation that promotes human rights and has a global supporter base of seven million, has spent the last few weeks investigating materials submitted by international aid workers, journalists, medics and witnesses to the ongoing oppression of the Rohingya. It is the responsibility of Dr Gomez, a former Singaporean politician, to verify that material to determine whether crimes against humanity have occurred.

He told the FCC event on November 1: “There was systematic and targeted burning of Rohingya villages and houses. People were shot as they fled.” He added that evidence from medics on the ground had shown bullet wounds in the backs and backs of legs of victims.

FCC board member and journalist Florence de Changy was one of the audience members to pose a question. Photo: Sarah Graham/FCC

Dr Gomez said those responsible for the violence against the Rohingya were Myanmar’s Western Command, and Light Infantry 33 and 99 divisions. He said Amnesty International was also investigating the role of the senior general commander of the Myanmar military.

Of Aung San Suu Kyi, he said she was isolated and “sitting on a thin crust” with her party, the National League for Democracy, because there appeared to be no communication with other “old boy’s club” members.

China also took some criticism for not participating in diplomatic discussions on the matter due to its economic interests in Myanmar. Nicholas Bequelin, Amnesty’s regional director for East Asia, said that for China to claim with any credibility that the situation in Myanmar was only an internal issue was “ridiculous”.

Florence de Changy announced as new FCC president after Juliana Liu steps down

Florence de Changy has been elected President until the end of this term (May 2018).

Dear Fellow Members,

At last Saturday’s board meeting FCC President Juliana Liu stepped down as her employment with BBC was ceasing on the same day. Her new job does not allow her to keep her “Correspondent” status, a sine qua non to be President of the Club.

The board passed a unanimous motion of thanks to Juliana Liu to acknowledge the tremendous work achieved during her time at the helm of the FCC.

As First Vice-President, in accordance with the Articles of the Club, I stepped in to chair the meeting. I was then elected President until the end of this term (May 2018). Victor Mallet (Financial Times) was elected First Vice-President. And Daniel Ten Kate (Bloomberg) was co-opted to fill the vacant Correspondent seat, as the non-elected correspondent with the highest number of votes at the last elections.

As far as I am concerned, I have been a Foreign correspondent since I left France in 1991 where I worked for Le Figaro and RFI. I currently report for the French daily Le Monde and RFI (Radio France International). I have been based in Hong Kong since 2007 after Taiwan, Malaysia, New Zealand and Australia.

It is a great honour and a privilege that has abruptly fallen on me. I’ll do my utmost to be up to the tasks and challenges ahead, with the help and support of all the other board members and the wonderful staff of the Club.

Best regards,

Florence de Changy

FCC expresses concern over the exclusion of major news organisations from China’s political unveiling

The Foreign Correspondents’ Club, Hong Kong, is concerned at the unexplained barring of several major international news organisations from the most important political event in China in the last five years.

The BBC, the Financial Times, the Economist, the New York Times and the Guardian were all denied access to the unveiling of the new Politburo Standing Committee in the Great Hall of the People in Beijing. Photo: AFP

The BBC, the Financial Times, the Economist, the New York Times and the Guardian were all denied access to the unveiling of the new Politburo Standing Committee in the Great Hall of the People in Beijing on the morning of October 25.

Chinese government officials did not explain why these particular news organisations were all excluded from the carefully stage-managed event attended by some 2,000 journalists. A statement from the congress media centre said that space was limited on Wednesday and noted that the media concerned had been able to attend previous briefings.

However, it seems almost certain that they were likely barred simply because of their, at times, critical coverage of China and Chinese politics.

As the Foreign Correspondents Club of China noted in a statement yesterday: “Using media access as a tool to punish journalists whose coverage the Chinese authorities disapprove of is a gross violation of the principles of press freedom.”

Restricting media access to key political events is an ominously retrograde step for a country and government that claims to be open and transparent. Moreover, it contrasts sharply with the relatively free and open access given to foreign journalists at Communist Party Congresses in the 1980s and 90s when the country was just re-emerging on the world stage.

If China wants to be seen as responsible leader of the global community it should honour President Xi Jinping’s claim that the country “welcomes objective reporting and constructive suggestions” and allow both domestic and foreign journalists to do their job.

Successful Scots reveal highs and lows of life as entrepreneurs

left to right: Andy C. Neilson, Co-Founder, King & Country; Malcolm Offord, Founder, Badenoch & Co. Photo: FCC/Sarah Graham

Go with your gut instinct in business and learn from your mistakes – that was the advice from serial entrepreneur and co-founder of Wan Chai’s famous Joe Bananas bar at a lively club lunch.

Andy C. Neilson, also co-founder of military and civilian miniatures shop King & Country, joined fellow entrepreneurial Scot and founder of Badenoch & Co. Malcolm Offord in sharing the secrets of their successes – and failures. The pair spoke during the event titled From Scotland to Hong Kong: How Entrepreneurs Compete On the World Stage on October 25.

Both are at the helm of several thriving businesses, though Offord is based in Edinburgh, Scotland, where he is chairman of Badenoch & Co, which invests in emerging Scottish manufacturing companies. Among the many titles he holds, he is also a director of Cashmaster International Ltd which supplies leading retailers with top-of-the-range count-by-weight cash devices; and chairman of the National Museums Scotland development board.

Neilson, on the other hand, is a Hong Kong stalwart. He left his job as a Royal Marine Commando in “depressing” Britain in 1977 to join what was then Hong Kong’s Royal Police. After two years on a paltry junior inspector salary of HK$2,500 per month, Neilson, who had studied graphic design at art college in Scotland, moved first to the public relations arm of the police, then to the Government Information Service.

It wasn’t long before new opportunities came his way – opportunities that would only have been available in Hong Kong. “The one thing that impressed me once I got here was the wealth of opportunity,” he said.

With Laura, his first wife, Neilson set up a freelance graphic design studio which soon led to a weekly cartoon in the South China Morning Post. Not long after Laura took a job in the popular Bull & Bear pub in Hutchison House, the couple decided to open their own bar. Mad Dogs in Wyndham Street, named after the Noël Coward song but without the Englishmen – “…we wanted a British-sounding name but, being Scottish, there was no way we’d keep Englishmen.” – opened its doors in 1984.

It was such a success that Neilson and his wife went on to open the legendary Joe Bananas – named after an infamous gangster – in Wan Chai. King & Country, one of the world’s major designers and producers of all-metal, hand-painted 1:30 scale military and civilian miniatures, was their next venture.

By his own admission Neilson said he had made plenty of mistakes along the way despite managing several thriving businesses. One such error of judgment was not buying the building which was home to Mad Dogs. The owner offered it to him in the late 1980s for HK$6m. Because Neilson had only recently opened Mad Dogs, into which he’d ploughed all his money, so he said no. He was offered it again a year later for the slightly increased sum of HK$8m. This time all his cash was tied up in Joe Bananas, so he again was unable to take up the offer. The building later sold for HK$80m. “That’s a case of when you miss the boat,” Neilson said.

Offord started out as a law graduate at Edinburgh University but he “hated the subject”. Nonetheless, he went on to have a successful 27-year career in the City of London. But his passion these days is a focus on encouraging Scotland’s growth through manufacturing. To that end he is also chairman of Borders Whisky Distillery in the Scottish Highlands, with its newest distillery undergoing a £10 million refurbishment to turn a disused industrial site in Hawick into a modern distillery.

As chairman of the National Museums Scotland development board he has also been instrumental in the ambitious 15-year refurbishment project taking place there. The museum is home to several exhibitions with ties to China, including the largest collection of bones outside the country. He wants to highlight the success of Scots abroad. He said: “It’s about collections sent back from around the world by Scots who went overseas and were successful in foreign lands.”

During the lengthy whisky distilling process Offord said he would produce gin using plants from Kew Gardens that were harvested from overseas by the top ten ‘plant hunters’, all of whom were Scottish.