Wilson Looks for Closer Ties With Asia’s Economy

HONG KONG — Hoping to loop California more tightly into Asia’s economy, Gov. Pete Wilson on Monday launched a seven-nation mission on the far side of the Pacific with an appeal for mutual investment and closer economic ties.

Part salesman, part politician, Wilson highlighted California’s recent recovery from recession under his administration and touted tax cuts and deregulation as investment incentives. Hong Kong is already the seventh-largest direct foreign investor in California.

“I’ve come to Asia to spread the word that California is not just back in business, but that we’re exemplifying the same economic savvy and hustle that has made Hong Kong the envy of much larger nations around the world,” he told business leaders at an Asia Society luncheon.

“We have a message to high-tech investors,” Wilson said. “You will be rewarded if you come to California.”

Hong Kong is the first stop on a trade trip that will take Wilson to seven countries--and meetings with presidents, prime ministers and business leaders--across Asia, home to six of California’s top 10 export markets. The 21-day tour includes Hong Kong, Singapore, Indonesia, the Philippines, Thailand, Taiwan and China.

In China, Wilson plans to meet President Jiang Zemin and trade minister Wu Yi. He said he will discuss the growth in piracy of computer software, movies and music, which hit California’s key export sectors especially hard and brought the U.S. and China to the brink of a trade war last year.

Also on Wilson’s Chinese agenda: the future of Hong Kong after China reclaims the territory July 1. “A Communist regime is by definition not a free-trade regime,” Wilson said. “But this is an opportunity for Beijing to demonstrate it is a ruler with the wisdom to permit the freedoms that made Hong Kong what it is.”

Wilson’s delegation crossed paths with California State Treasurer Matt Fong, also in Hong Kong on an Asian road show with state pension fund managers. Fong gave a similar pitch at a financial conference: that with its trillion-dollar economy and $234 billion in funds to invest, California has a lot to offer.

Fong said the state’s fund managers were among the first American institutional investors to identify Asia’s high returns.

“People often think if you go outside of your hometown, it’s a little bit fishy,” Fong said. “But we’re coming to the fastest-growing part of the world for good reasons . . . about building a relationship.”

Heads of seven pension funds, including the $100-billion-plus California Public Employees’ Retirement System, got advice from Hong Kong’s top businessmen about where to put their money.