CAP
UK CONFIDENTIAL
Head DI 73c
FROM: CA Younger Esq
MINISTRY OF DEFENCE
Metropole Building Northumberland Avenue London WC2N 5BL
P I Webb Esq
Telephone (Direct Dialling) 01-218 5877
(Switchboard) 01-218 9000
HICK Daill
reference
Our reference
Political Advisor's Office RECEIVED IN REGISTAT NO. 51 D/DEI/DI 73c/L2/1/SM
Government Secretariat
Lower Albert Road
HONG KONG
04 FEB1981
DESK OFFICER
INDEX
PA
REGISTRY Action Taken
Date
21 January 1981
307
se
Dear Webb,
Aw itla
46
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36.14
I understand that you have recently succeeded Tony Bennett and are responsible for monitoring economic relations between Hong Kong and China.
1.
20
This section in the Directorate of Economic Intelligence, and one desk officer in particular, Suzanne Miles, studies Hong Kong in so far as it affects the economy of China, which is our main priority. The most important aspects of our work are:
a.
b.
Its import, export and re-exports trade with China.
Communist Chinese commercial and financial activities in Hong Kong.
Investment in China's Special Economic Zones (SEZ's) in Guangdong and Fujian,
C.
d.
The contribution Hong Kong makes to China's total foreign exchange
earnings.
3.
e.
China's attitude and policy towards Hong Kong.
f. Hong Kong's general economic performance.
In the past we found Tony Bennett's survey on the development of the SEZ established in Shenzhen extremely useful and detailed. We hope you will be able to update it as the SEZ progresses and will copy anything new to us. We of course read the South China Morning Post and the Business Standard.
4. On the financial side we are currently working on China's balance of payments position in 1980 and note from our files that Iain Orr (with whom we have had many dealings) copied to us in October 1979 tables on China's Purchases of Foreign Currencies, January 1977 to July 1979, prepared by the Monetary Affairs Board. the corresponding details for August 1979 to December 1980 available and if so could we please have a copy?
Are
5. We are also interested in the progress made and/or problems met by Guangdong and Fujian in arranging and financing their own foreign trade now that Beijing has granted them (and selected other provinces and cities) a degree of autonomy in
UK CONFIDENTIAL