3.
RELATIONSHIP OF HONG KONG TO BRITAIN
Hong Kong contributes greatly to London's reserves and to the pound.
Hong Kong is an escape route in times of crisis - removal of money from the City to Hong Kong one of the most important factors in fall of Labour government over devaluation of the pound in 1967.
Financial and industrial operations in Hong Kong and from Hong Kong as a base are highly attractive. Hong Kong has functioned like an offshore island of the United Kingdom where taxation is less than half, tax evasion is simple, wages rock bottom, growth much greater than that of Great Britain - no problem of exchange controls.
A mammoth banking shipping
-
il combine in Hong Kong.
Hong Kong and Shanghai Bank was the first British bank in Hong Kong to go into financing industry and shipping in a big way.
The most unusual feature of Hong Kong's relationship to the United Kingdom is that it provided London with a regular and far from negligible financial contribution.
INDUSTRY AND TRADE
Percentage of total active population involved in manufacturing is the highest in the world. The economy has not been run in the interest of local inhabitants - Britain has exploited Hong Kong as Xa detached component of the U.K.
Before World War II Hong Kong lived off trading, banking and shipping. After the war and revolution in China it developed into an important ma:ufacturing colony.
Capitalist Chinese and proletarian fleeing the revolution gave Hong Kong a labour force and entrepreneurs with capital.
Government does not publish statistics on gross national product. National income and foreign ownership of assets in the colony.
In Hong Kong
a No minimum wage
b
No paid maternity leave
No maximum hours of work for males over 18.
a
No sickness benefits
No unemployment insurance
f
g
No insurance provisions for widows with young children No medical treatment free for all
h)
No compulsory education.
Ban on membership of political parties and Trade Unions subject to severe restrictions. Government refused to enact legislation to protect basic rights of workers.
The conony
Hong Kong a leading manufacturing complex and major commercial centre within Asia. Has one of the finest ports in the world. Victoria Harbour, strategically located airport and good worldwide communications. 1976 - 22.878 registered industrial undertakings in Hong Kong employing 689 789 workers. not taking into account small, unregistered factories,