HONG KONG'S BALANCE OF TRADE WITH THE UNITED KINGDOM

I recognise that Hong Kong enjoys a favourable balance of

visible trade with the United Kingdom, amounting in 1975 to

£150 million. Although no official figures are available, on

present information there are indications that the United Kingdom

is normally in surplus on the balance of payments as a whole

when invisibles are taken into account.

HONG KONG'S STERLING RESERVES

Hong Kong is under no constraint to hold its external

reserves in sterling.

The structure of the sterling balances

has changed and it is no longer one of the major official holders.

THE DEATH PENALTY

Her Majesty's Government is well aware of the resentment

that the death penalty issue causes in Hong Kong. The present

situation is brought about by the balance of opinion in this

House on the whole issue of capital punishment.

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