UNCLASSIFIED
WORLD ENJOYS AS HONG KONG DOES, AN UNLIMITED AND ACCESSIBLE POOL OF LOW COST LABOUR ACROSS THE BORDER. HONG KONG EMPLOYS 3 MILLION WORKERS IN 18,000 COMPANIES OVER THE BORDER AND THIS ENABLES HONG KONG TO REMAIN INTERNATIONALLY COMPETITIVE. THE SERVICE SECTOR, ALSO A SECTOR WHERE U.K. FIRMS ARE STRONGLY REPRESENTED, SEES EXCELLENT OPPORTUNITIES IN PROVIDING FINANCIAL AND OTHER SKILLS TO CHINA FOLLOWING THE DE-REGULATION, NOW UNDERWAY, OF BANKING, INSURANCE AND LEGAL CONTROLS.
PROJECTS
5. THERE ARE CURRENTLY MORE LARGE PROJECTS IN HONG KONG THAN ANYWHERE ELSE IN THE WORLD. BUT SUCCESS IN MANY OF THESE WILL HINGE ON ECGD SUPPORT. ECGD HAS BEEN INVALUABLE IN KEEPING BRITISH FIRMS IN CONTENTION. DETAILS OF IMPENDING CONTRACTS ARE LISTED SEPARATELY.
INVISIBLES
6.
PROBABLY AS PROFITABLE AS VISIBLE EXPORTS, AND OUR POSITION HAS BEEN GREATLY STRENGTHENED BY THE HONG KONG BANK TAKEOVER OF MIDLAND.
COMMENT
7. HONG KONG REMAINS ONE OF THE WORLD'S MOST PROSPEROUS AND BUOYANT ECONOMIES, WITH A STRONG CADRE OF SKILLED AND ENTERPRISING BUSINESSMEN. AS THE ECONOMY IN HONG KONG SWINGS AWAY FROM MANUFACTURING AND TOWARDS SERVICES, PARTICULARLY FINANCIAL SERVICES, AND CHINA OPENS UP, HONG KONG WILL PRESENT AN ATTRACTIVE AND GROWING MARKET FOR BRITAIN'S INVISIBLE EXPORTS. THE SCALE, SIZE AND THE SPEED AT WHICH OPPORTUNITIES ARISE IS PROBABLY UNEQUALLED ELSEWHERE IN THE WORLD AT PRESENT.
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