a.
CFM(67)38
st August 196.
HER MAJESTY'S TREASURY
COMMONWEALTH ECONOMIC CONSULTATIVE COUNCIL
Meeting of Finance Ministers 1967
HONG KONG
Note by Commonwealth Office
One of the most important factors in the present attempt of the local Chinese Communists in Hong Kong to challenge the authority of the Government is the need to maintain confidence. So far public and business confidence has borne up remarkably well and the Colony's trading results had been little affected. Nevertheless, if doubts arise as to the capacity or determination of the authorities to withstand the Communist challenge, the
situation will deteriorate rapidly. Because of her geographical position and the almost complete dependence of her economy on exports, Hong Kong has always been extremely sensitive to overseas, particularly British, opinion.
Total trade in 1966 was approximately £1,100 million (Imports £630 million: Exports and Re-exports £470 million). Trade figures for January-June 1967 show a 19% increase on the comparable period of 1966 in part, because of a change in the basis of calculation. Imports from Britain in 1966 were £67 million and exports and re-exports to Britain totalled £64 million.
U.K. direct and portfolio investment may be in the region of £80 million but little information on this subject is
available.
Aid. Apart from Technical assistance to the Universities, Hong Kong received no aid from U.K. funds.
COMMONWEALTH OFFICE
LONDON, S.W.1.
(A0