CONFIDENTIAL & A

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17.

(e) Summary

In summary, the amount of China's net foreign exchange earnings (excluding loans and capital flows) obtained from Hong Kong in 1982 is estimated to have been HK$32.3 billion (US$5.3

billion). In terms of Hong Kong dollars, this is

120% higher than in 1977, thus representing a growth rate of 17% p.a. during the five years prior to 1982

(Table 5).

Table 5 : China's net foreign exchange earnings (excluding loans

and capital flows) from Hong Kong

1977 1978 1979

1980 1981

(US$Mn)

1982

Visible trade surplus

1689

2189 2640

3155

3315

3481

Invisible trade surplus

78

115

239

359

410

413

(80% of expenditure by Hong Kong residents in China)

Remittance and other

384

445

537

681

737

777

unrequited transfers

Investment earnings

263

323

413

569

615

649

2414

3072 3829

4764

5077

5320

G.E. 326

CONFIDENTIAL # 2

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