. Paul Gray Esq

Under Secretary

HM Treasury

Parliament Street

LONDON

SW1P 3AG

Direct line

071-215 5230

Our ref

Your ref

dti

the department for Enterprise

CONFIDENTIAL AND PERSONAL

Department of Trade and Industry

Kingsgate House

66-74 Victoria Street London SW1E 6SW

Enquiries

071-215 5000

Telex 8813148 DIHQ G

Fax 071-931 0397

Date 23 February 1993

Dear Paul

ASSESSMENT OF IMPLICATIONS OF HONG KONG ECONOMIC AND FINANCIAL POSITION

Thank you for your letter of 8 February.

As our input to the next stage of the work I enclose three attachments.

At Annex A is a three part list of companies with involvements in Hong Kong, comprising a list of large companies with major interests, a list of second tier companies with involvements and a list of companies in Hong Kong with UK manufacturing or retail investment.

At Annex B is a list of companies with current involvement in projects in Hong Kong. We are all a little surprised that it is not longer but it has been put together after a careful trawl of our project interests.

At Annex C is some material on insurance as our contribution to the assembly of information on UK based portfolio investments in Hong Kong and China. It comprises a note and a list of insurance companies active in Hong Kong.

This last is not based on a detailed analysis, in part because Hong Kong exposures will be de minimis for most insurance companies and are therefore not identified separately in our regulatory data. But the opinion of my colleague responsible for insurance is that the conclusion is pretty clear, that UK insurance companies are most unlikely to be put in any form of jeopardy by adverse developments in the Hong Kong market. The Hong Kong market in equities (property may be another story)

Cont/...2

Recycled Paper

888-273

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