Tourism

CONFIDENTIAL #

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31.

In the second quarter of 1987, about 3.3 million

trips were made by Hong Kong residents to China,

representing an increase of 21% over the same quarter in

1986. In addition, 207 199 trips were made by foreign

visitors to China through Hong Kong, representing an

increase of 19% over the same period last year. The

number of direct trips made by Chinese residents to Hong

Kong (i.e. excluding trips made by Chinese residents to

Hong Kong from places other than China) rose by 22% over

the same period to 71 840. Of these, 32% were in the form

of group tours, 28% were made by two-way permit holders,

and the rest were made by PRC passport holders coming to Hong Kong as visitors (including transit visitors).

32.

Over the same period, 2 037 PRC official

delegations comprising 7 928 people visited Hong Kong.

This compared with 1 668 delegations comprising 6 786

people in the first quarter of 1987. More than half of

the official delegations in the second quarter of this

year involved delegations of a business or commercial

nature. At the end of June 1987, there were 5 582 PRC

officials working in Hong Kong, compared with 5 301 at the

end of March 1987.

Financial links between Hong Kong and China

33.

In terms of external financial transactions,

claims on China's banks by Hong Kong's financial

institutions (banks and deposit-taking companies) recorded

an increase of 12.9% during the second quarter of 1987 to HK$39.3 billion (US$5 billion). Liabilities of Hong

Kong's financial institutions to China's banks increased

more rapidly, by 16.1% to HK$40.0 billion (or US$5.1

billion). Thus, the total claims and liabilities between

the financial sectors in these two economies were roughly

CONFIDENTIAL **

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