VZCZCXRO9444
RR RUEHCN RUEHGH
DE RUEHHK #2313 2490756
ZNR UUUUU ZZH
R 060756Z SEP 07
FM AMCONSUL HONG KONG
TO RUEHC/SECSTATE WASHDC 2832
INFO RUEHBJ/AMEMBASSY BEIJING 1390
RUEHCN/AMCONSUL CHENGDU 1174
RUEHGZ/AMCONSUL GUANGZHOU 0838
RUEHGH/AMCONSUL SHANGHAI
RUEHSH/AMCONSUL SHENYANG 3625
RUEAEPA/HQ EPA WASHDC
RUEHIN/AIT TAIPEI 4662

UNCLAS HONG KONG 002313 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
STATE FOR EAP/CM AND OES/E 
 
E.O. 12958: N/A 
TAGS: SENV ENRG PGOV HK
SUBJECT: HONG KONG AIR POLLUTION DETERRING EXPATS, SAYS 
AMCHAM SURVEY 
 
¶1. (U) Air pollution increasingly is harming Hong Kong's 
attractiveness as a posting for expat executives, according 
to the American Chamber of Commerce in Hong Kong's second 
annual environment survey. Fifty-one percent of respondents 
claimed difficulty in recruiting professionals to work in the 
city, as a result.  The survey, to be released on September 
10, shows marine water quality and traffic congestion ranking 
second and third as top influencing factors, with concern 
about traffic congestion increasing from 49 to 60 percentage 
points in just one year.  Overall, 81 percent of respondents 
are not/not confident that the natural environment of Hong 
Kong will improve in the next twelve months.  Reduction of 
transport emissions and gaining mainland China cooperation 
are cited as the most important actions that the Hong Kong 
government could take to change that outcome. AmCham 
President Jack Maisano said, "It's not that the Hong Kong 
government has been standing still, it's that international 
executives do not see a bold and clearly articulated 
prescription for progress." 
 
¶2.  (U) The survey focused on two areas, the quality of Hong 
Kong's environment, and potential Hong Kong government 
solutions.  The survey respondents indicated the following: 
 
-Hong Kong's attractiveness to foreign investors is expected 
to drop in the future (78 percent agreed). 
-Companies will invest elsewhere (57 percent agreed). 
-More foreign professionals are thinking of leaving Hong 
Kong, 83 percent vs. 78 percent in the 2006 survey. 
-They personally know foreign professionals who have declined 
employment in Hong Kong due to the environmental quality (70 
percent in 2007, an increase of 15 percntage points since 
2006). 
 
Suggested governmentsolutions, in rank order, include: 
 
-Reduce polltion by transport (reduce emissions and the 
numbr of vehicles); 
-Work with local Chinese governmnts to cleanup mainland 
China; 
-Educate the pulic and Hong Kong companies who own factories 
in ainland China; and 
-Impose laws/taxes/penalties. 
 
¶3.  (U) The Survey: The 2007 Environment Survey was 
administered by The Nielsen Company, and sent to 628 AmCham 
member companies.  The survey had a rather low response rate 
of 14 percent (89 responents), and a margin of error of 
plus/minus 5.3 percent.  This is the second annual survey, 
initiated to measure AmCham member views on environmental 
quality and competitiveness. Survey details and graphics can 
be found at: www.amcham.org.hk. 
 
¶4.  (SBU) Comment: The survey provides tangible data to 
support anecdotal evidence that the expatriate community in 
Hong Kong views environmental issues seriously, and is making 
financial and personal decisions with these issues in mind. 
Additionally, the survey is generating broad media attention. 
 A senior environmental protection officer said that the Hong 
Kong government, including the Chief Executive, had noted the 
survey and that they would continue to work on solutions. 
 
¶5.  (SBU) Comment, continued: Unquestionably worsening air 
pollution in Hong Kong is becoming an important political and 
economic issue, and the AmCham survey has usefully tried to 
quantify this fact.  That said, the relatively low response 
rate weakens the impact of the data represented. 
Furthermore, the Hong Kong government reports a growing 
number of overseas companies registering in Hong Kong, 
reflecting Hong Kong's importance as a regional business 
center, with total foreign registrations growing by at least 
200 companies for each of the last five years. End comment. 
Cunningham