1989-03-16 14:55 BRITISH TRADE COMMISSION

852 5 845 2870 P.08

Conclusion

-6-

13. There is no doubt that British commercial involvement in Hong Kong is

extensive, complicated and it touches almost every sector of the economy. It is

also clear from this review that British investment and management involvement

remains the major overseas influence in Hong Kong business.

14. If Britain's 'invisible' earnings in Hong Kong (more than £1,000m) are

added to the value of British merchandise exports to Hong Kong (£1,030m in

1988) and compared with the value of Hong Kong exports to Britain (£1,556m in

1988) and the much smaller 'invisible' earnings by Hong Kong in Britain, it is

probable that the amount of business between Hong Kong and Britain is roughly

in balance and worth in excess of £4,000m a year.

15. No attempt has been made in this review to assess the net value of Hong

Kong investments in Britain. However, known purchases from Hong Kong of equity

in British companies and of property in the last few years have amounted to

over £1,000m. In addition, Hong Kong companies have established at least six

manufacturing units in Britain.

14 March 1989

REH/mcs

TOTAL P.08

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