HONG HONG: UK COMMERCIAL AND FANKING INTERESTS
Annex 7
Trade with Hong Kong represents only a very small part of total
Už trade. In 1982 UK exports to Hong Kong were about £730 million, 1.3 per cent of all UK exports and 5.4 per cent of all Eong
Hong imports. UK imports from Hong Kong were about 1.5 per cent (4870) of all UK imports and about 7.5 per cent of all Hong Kong exports. The visible trade balance favours Hong Kong. Invisibles, notably earnings from banks and construction companies, may give the advantage in the current account as a whole to the UE.
2. UK direct investment in Hong Kong in 1981 (the latest year for which figures are available) was £463 million, or 7 per cent of total overseas direct investment (compared with 42 per cent from the USA and 32 per cent from Japan). Hong Kong is however a significant market for UK capital goods, and it represents ECCD's largest single exposure. At end-March 1983 ECGD had £708 million at risk under Section 1 and £2,636 million under Section 2.
3.
Of 135 banks operating in the territory only 8 are incorporated in the UK. At end-December 1982 UK-registered banks' consolidated external claims on non-banks amounted to US £ 2,022 million; claims by British-owned banks totalled US $ 1,721 million of which US Z 2,025 million was unguaranteed. Figures for total exposure to Hong Long (including off-shore business) were: UK-registered banks US 2 4,694 million; British-owned banks US Z 4,071 million, of which US £2,028 million unguaranteed. The Standard Chartered Bank's Hong Long subsidiary is substantially exposed and in extrem circumstances this would cause difficulties for the rarent
bank in London.