Trade based on 'give-and-take'
The Senior British Trade Commission- er here, Mr T. W. Aston, yesterday rap ped the Hongkong General Chamber of Commerce for what he described as an "unbalanced picture" in an article entitled "What is Hongkong really worth to Britain?"
Mr Aston said the report by the Chamber had given an impression that Britain was "milking" Hongkong to its net advantage, with nothing given in
return.
Referring to the cash flow out of Hongkong into Britain as a result of the stock boom, Mr Aston said the reported figure had certainly left many questions unanswered.
Some of the questions, he said, were: "How much of the cash that flowed into
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the Colony stayed "in," and how much of the in-flow had contributed to the general economic boom in Hongkong, and the benefits it thus gained from this?
Mr Aston also pointed out that the total amount of about $200 million from Britain invested here in joint ventures, or solely-owned overseas companies in the manufacturing industries, also amounted to one-fifth of total foreign investments in the Colony.
When it came to the financial sector, Mr Aston said, it was true that a number of banks had set up offices in Hongkong, but this had only enhanced the Colony as an international money market.
A number of British insurance companies also set up operations here, he added, but it should be remembered that they had no monopoly in the business.
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He said the same applied to the construction sector, in which UK firms had won contracts for a number of major projects.
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Mr Aston stressed that companies had no favoured position in the awarding of such contracts, as they were secured by straight, international competitive tendering.
"There is not one iota of advantage for British construction companies."
On the question of Hongkong being a market for British products, Mr Aston said the $1,400 million worth of purchases made by Hongkong last year only represented one per cent of tal British exports.
In reverse, Britain is Hongkong second largest market and took more than $2,200 million last year, he added.
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