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CONFIDENTIAL
Mric 121/2
LORD CAITHNESS VISIT TO HONG HONG, 22-25 JULY 1991.
1991
Pa
18
BACKGROUND:
KEY POINTS
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UK/Hong Kong Trade and Investment
Hong Kong is still the UK's strongest base in the Far East, though in many respects rivalled by Singapore. Our involvement in Hong Kong touches almost every sector of the economy. The main UK commercial interests in Hong Kong are:
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As a market for direct exports: It is UK's 18th largest export market, with exports in 1990 of £1238m, an increase of 11.4% over 1989. We sell twice as much to Hong Kong as we sell direct to China and almost half as much as we sell to Japan, which has an economy 49 times size of Hong Kong's.
As a market for invisible services: UK companies have a very large presence in Hong Kong's invisibles sector, with revenue estimated to be at least equal to value of UK's visible exports
As a location for investment: British investment and managerial involvement are a major overseas influence in Hong Kong business. UK is 4th largest long-term manufacturing investor in Hong Kong
UK commitment to Hong Kong reflected in the many major UK retailers who have opened stores in Hong Kong in the last few years.
Hong Kong Government frequently point out that on their figures our share of Gvt procurement was 17.8% in 1990 compared with a share of 2.2% of total import market.
Major Projects
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UK companies have a continuing strong interest in major project business in Hong Kong eg PADS, power projects
UK has been a traditional supplier to the Hong Kong market and is able to provide a range of power equipment which would fully meets its needs.
Hong Kong Economy
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Hong Kong economy grew by 2.4% in 1990. 3.5 % growth predicted for 1991. Inflation currently over 13%.