According to reports, the ROC visa office in Hong Kong has pointed out that, since the Tienanmen incident, the number of people applying for visas to Taiwan has multiplied many times. And the number inquiring about investing or permanent residence in Taiwan is up from a few per day last year to today's more than 80 per day.

In fact, even before the Tienanmen incident, especially in the past few years, cases of investment and total investment volume from Hong Kong to Taiwan have risen clearly. In the service industry, the area engaged in most by Hongkongers, the number of investments from Hong Kong approved by the Investment Commission in 1986, 1987, and 1988 was 4, 11, and 41, with amounts of NT$2.85, 8.9, and 110 million, respectively.

"The main reason is the market on this side," explained Lily Lee, managing director of the Taiwan branch of The Cotton Collection (Hong Kong) Ltd. After the lifting of martial law and controls on foreign exchange, the investment environment is more open. Add to this that incomes have increased, and consumption capacity is up--all these are reasons why the parent company decided to come to Taiwan more than a year ago.

Leo Burnett Company, Ltd., opened in Taiwan three years ago for many of the same reasons. But Creative Director Kitty Lun-chan also says that cultural background was a decisive factor: "Without a similar cultural background, I'm afraid I couldn't really get the most out of my creativity."

Getting started isn't easy.

Sunny Pao of the Se-yi Hong Kong Styling House recalls that when they came to Taiwan 14 years ago, because of language problems they had to have a translator with them when talking to customers. And at that time most people in Taiwan still didn't really have the concept of hair styling: they would rack their brains to come up with a style, only to hear complaints that "you didn't do it as I asked." Fortunately customers got used to the idea, and one of them became Pao's wife. He now makes his home in Taiwan, and, under his wife's tutelage, he not only has no trace of a Cantonese accent, he's even mastered Taiwanese.

Tony Hau of the Hau Chi Shing Jewelry Company talks about studying Mandarin when he first arrived four or five years ago. "I would read aloud every sign walking on the road, and ask passersby to correct my pronunciation; it took a lot of courage and a thick skin."

But many Hongkongers respond that even with great courage they can't stand some of Taiwan's legal contradictions. And thick skin can't stand up to the ever worsening air pollution and traffic problems.

Sunny Pao says, for example, that when he came to Taiwan he went "like a nice boy" to register and get a license. Only later did he know that a lot of people just open up without licenses. "Not only do they not have to pay tax, they don't have any legal restrictions. Is it possible this is to protect the 'bad guys' and wipe out the good guys?" He feels that, given this, it's really hard to encourage people to obey the law.

"However, in terms of working environment, Taiwan gives me a lot better feeling than Hong Kong," says Lily Lee. Hong Kong businessmen are calculating. Though Taiwan businessmen are no nonsense in doing business, they are more warm and considerate too. After her shop opened, her landlord not only came to visit many times, he even provided furnishing. "In Taiwan, a con tract is one thing. If something's not in the contract, everybody can discuss it easily."

"When in Rome. . . ." it is said. Have Hongkongers adapted to local business?

Tony Hau says it's not the case. He believes that Taiwan people are far less intense doing business than Hongkongers. And, with demand for jewelry booming under the impetus of greater consumer power, the work of a Hong Kong master, with a slightly higher level of skill, is immediately embraced. Meng-huei Tang, assistant general manager for public relations at the Hung Foo Bullion Company, points out that these "wandering masters" have done much to raise the level of skills in the industry as a whole.

But the impact of Hongkongers in Taiwan does not stop there.

When restrictions on gold trading were lifted in November, 1986, the Taiwan gold market was thrown into disarray by the sudden demand, spawning an NT$500 gap between the international and domestic sales prices of a tael, as well as a black market. In 1987, after passing through the application process for overseas Chinese, Hung Foo introduced gold futures to Taiwan. Using the latest information, they were able to match changes in the international price of gold step for step. They set the home cost at only NT$40 above the international price. Traditional gold houses couldn't but rationalize prices.

Hong Kong managing also deserves a look. Sunny Pao points out that almost all the Hong Kong businesses to come here are in services, which most stress people: there's no other way to keep people than "to build a corporate culture and, through benefits and salary, satisfy worker demands as much as possible." Lily Lee hands out a "management handbook" to all employees to help build a common view. But you can't just give out a book and forget it--the managers have to spend a lot of time communicating with employees.

Tony Tai, chairman of the Hong Kong Bess Beauty Salon, now with nine shops in Taiwan, opened up cooperative relations with secondary schools to maintain the flow of new manpower. He gives his workers and staff stock in the company. Last month, he initiated an in-house magazine to go with existing language, music, and flower arranging classes, to provide employees with leisure activities.

While "the Hong Kong experience" can stimulate and elevate the local service industry, it is not without side-effects.

Lew Mon-hung, president of Solidlink Futures, Inc., says that some in his field take risks with clients' money for personal gain. While not common, the attitude of "take the money and run" is not especially unusual. Some say Hongkongers are this way because the colony lives on borrowed time. Professor Hsing Kuo-chiang of National Chengchi University says Hongkongers have little trust in Taiwan's safety; they are not willing to immigrate here because they don't want to have to run again.

Therefore, most keep British passports, or, less commonly, Canadian, U.S., or Australian. Even if they have homes in Taiwan, they prefer to go back to Hong Kong regularly. "No matter what," says Kitty Lun-chan, "for Hongkongers, Hong Kong is heaven." Besides cheap and convenient shopping, Hong Kong offers job opportunities and challenges unavailable elsewhere. Even those with residence permits abroad return to work in Hong Kong; the permit is just a psychological guarantee.

Of course, this kind of "guarantee" is not easy to get. For those who can't get it, they have to think of some other way out, and Taiwan is one path. Forget for the moment their underlying motives; at least they have more positive than negative influences on Taiwan.

Will Taiwan act in response to the stimulus Hongkongers bring? After all, there's no reason why Taiwan should lose out to anyone!

[Picture Caption]

(Above) Those in the beauty salon business showed a nose for business an d were pioneers among Hong Kong businesses in coming to Taiwan.

(Below) "Service" and "quality" are the two ways Hong Kong businesses hav e used to make places for themselves in Taiwan.

(Above) After the arrival of martial arts TV dramas, not only was there a "Hong Kong series fever," it gave the local television industry considerable stimulation. (photo courtesy of China Television advertising department)

(Below) Improvements in the level of Taiwan's jewellery industry are due in no small part to the arrival of Hong Kong "masters."

Hong Kong bullion dealers used the latest information and reasonable pric es as major assets in coming to Taiwan.

(Above) Cultural affinity and broad room for development are major facto rs in attracting Hongkongers to Taiwan.

(Below) The concept of futures now in Taiwan is almost entirely acquired from Hongkongers. (photo by Vincent Chang)

（Above） Those in the beauty salon business showed a nose for business an d were pioneers among Hong Kong businesses in coming to Taiwan.

（Below） "Service" and "quality" are the two ways Hong Kong businesses hav e used to make places for themselves in Taiwan.

Above） After the arrival of martial arts TV dramas, not only was there a "Hong Kong series fever," it gave the local television industry considerable stimulation. （photo courtesy of China Television advertising department）

（Below） Improvements in the level of Taiwan's jewellery industry are due in no small part to the arrival of Hong Kong "masters.".

Hong Kong bullion dealers used the latest information and reasonable pric es as major assets in coming to Taiwan.

（Above） Cultural affinity and broad room for development are major facto rs in attracting Hongkongers to Taiwan.

（Below） The concept of futures now in Taiwan is almost entirely acquired from Hongkongers. （photo by Vincent Chang）