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Hong Page 96 of 366circulates not only in the Page 6 of 66also over great areas in South China, to the great advantage not only of traders but of the general population in that area.
Even before
the Communist advance, inept administration in Shanghai had led to the beginning of a flight of industry to Hong Kong, and to a serious decline in shipping business.
(iv)
Hong Kong Trade
Every month Hong Kong handles about £20,000,000 worth of goods, of which it consumes, or produces less than three per cent.
In other words, Hong Kong's business is bringing in other people's goods and sending them out again. It provides storage, insurance, banking and shipping facilities for this transit trade, and the Colony has no other major economic role.
The total value of capital invested in Hong Kong is probably of the order of £250,000,000. Perhaps one quarter of this was invested by persons resident, and companies registered, in the United Kingdom. The remaining three-quarters represents local investments. Of this a half is probably non-Chinese (mainly British) capital, and the remainder Chinese. The total amount of British capital invested in Hong Kong may therefore be of the order of 156,000,000.
For the purposes of comparison it may perhaps be said that British investment in Shanghai is of the order of £250,000,000.
(x)
(a)
(15)
British Interests in China in relation to Hong Kong
British interests in China fall into two classes:
Import-export firas, distributing firms, banking,
insurance, agency and shipping firms. As far as it is possible to generalise it may be said that up to 90% of the total business of these firms is directly or indirectly dependent upon Hong Kong;
Industrial, utility and social enterprises in
China (eg cotton, mining, public utilities, hotels, hospitals, schools) to which Hong Kong is of negligible importance except as indicated in the succeeding paragraph. This second category probably represents the greater part of British property in China.
A number of companies operating entirely in China are registered in Hong Kong under Hong Kong law as "China companies". This enables them to maintain their capital in Hong Kong dollars. Communist action to compel registration in China in a currency with little or no practical value would presumably wipe out a large part of the value of the shares of those companies, which at present is probably sane millions of pounds. Even companies with little interest in Hong Kong under (b) of the previous paragraph have a considerable interest in Hong Kong from this aspect.
(vi) Shipping and Industries
Hong Kong lies roughly midway on the 2,500 mile run from Singapore to Japan. It is one of the finest natural harbours in the world and has been developed as a free port and little
Its industries are ship-repair and ship-building (up to 10,000 gross registered tons) and its services include registry, About 200,000 g.r.t. agency, bunkering, banking etc.
else.
?
inriage 96 366g is based on Hong Kong. Page 96 of 366
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