It is not known as to how much residents visiting the Middle East spend.
13
In terms of tourist expenditure, Hong Kong probably runs a surplus against Iran. But it is difficult to estimate precisely how much. Nevertheless, a figure between $10. million to $20 million represents only a small proportion of Hong Kong's total surplus on tourist travel which is of the region of $3,000 million.
14
Tourism is the only item of invisible trade which could be considered significant in the economic relationship between Iran and Hong Kong and as paragraphs 11 to 13 show the impact even of that is negligible. There could be some consequences for Hong Kong registered shipping but it has not proved possible to obtain information on what these might be.
15
The Export Credit Insurance Corporation is at present covering trade between Hong Kong and Iran of a value ranging between about HK$2 million and HK$4 million. According to the Corporation's Commission, the amount of trade between Hong Kong and Iran which they cover is showing a continuing sharply downward trend. The amount of trade that the Cor- poration is now covering is within a ceiling which they have set on the basis of judgements about the amount that can reasonably to put at risk.
Iranian foreign investment in Hong Kong
(a) Manufacturing
16
Information on Iranian foreign investment in Hong Kong is scanty. Records in the Trade, Industry and Customs Department show a 60% Iranian interest in only one manufacturing establishment of $5 million paid up capital, producing household and surgical gloves and compact cassette tapes.
(b)
Banking
17
There is only one branch of the Bank Melli Iran in Hong Kong and it started operation only on 1st March this year. There is no deposit- taking company with any identifiable Iranian interest. There is one repre- sentative office for the Bank Saderat Iran. So the extent of Iranian Involve- ment in the financial sector in Hong Kong should be small.
18
In terms of financial claims, at the end of 1979, identifiable claims of deposit-taking companies on Banks in Iran totalled HK$14 million and on non-bank customers in Iran totalled HK$66 million. Presumably these were arranged in US dollars. There is no visible relati onship between banks here and Iran.
CONFIDENTIAL