TUESDAY, JANUARY 22, 1985
NEW AIR OF CONFIDENCE, OPTIMISM IN HONG KONG,
GOVERNOR TELLS LONDON STOCK EXCHANGE
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THE SINO-BRITISH AGREEMENT ON HONG KONG HAD ENGENDERED A NEW AIR OF CONFIDENCE AND OPTIMISM IN THE TERRITORY, THE GOVERNOR, SIR EDWARD YOUDE, SAID IN A LECTURE TO THE LONDON STOCK EXCHANGE TODAY.
IT HAD ALSO REINFORCED THE CONFIDENCE OF MANY OVERSEAS INVESTORS, SIR EDWARD SAID IN HIS LECTURE ON THE POLITICAL AND COMMERCIAL PROSPECTS FOR HONG KONG+,
THE GOVERNOR POINTED OUT THAT INVESTMENT IN PLANT AND MACHINERY HAD PICKED UP, REFLECTING BOTH A LAGGED RESPONSE TO THE EXPORT RECOVERY AND GREATER INVESTOR CONFIDENCE IN THE FUTURE. AND EVEN IN THE PROPERTY MARKET, SIGNS WERE BETTER THAN THEY HAD BEEN FOR SOME YEARS.
CONFIDENCE THAT AN ACCEPTABLE SETTLEMENT WOULD BE ACHIEVED HAD ALWAYS BEEN STRONG AMONG A NUMBER OF FOREIGN BUSINESSMEN, PARTICULARLY FROM THE UNITED STATES, HE SAID.
POINTING OUT THAT ABOUT 500 FACTOR IES HERE WERE EITHER FULLY OR PARTLY OWNED BY OVERSEAS INTERESTS, SIR EDWARD SAID ALSO THAT THE UNITED STATES ACCOUNTED FOR OVER HALF OF THE TOTAL OVERSEAS INVESTMENT, WITH JAPAN ACCOUNTING FOR ANOTHER FIFTH.
UNITED STATES INVESTMENT HAD BEEN PARTICULARLY STRONG IN THE ELECTRONICS INDUSTRY, INCREASING BY MORE THAN 50 PER CENT IN THE LAST THREE YEARS, AND ACCOUNTING FOR NEARLY 80 PER CENT OF TOTAL OVERSEAS INVESTMENT IN THAT INDUSTRY.
JAPANESE BANKS, THE GOVERNOR SAID, HAD SHOWN STRONG INTEREST IN THE FINANCIAL SECTORS. OF THE 14 OVERSEAS BANKS LICENSED IN THE LAST TWO YEARS, 10 OF THEM WERE FROM JAPAN,
SPEAKING OF THE GREAT OPPORTUNITIES' OPEN TO THE UK BUSINESS COMMUNITY, SIR EDWARD NOTED THAT MANY UK COMPANIES, SOME OF THEM HOUSEHOLD NAMES, HAD BEEN OPERATING SUCCESSFULLY AND PROFITABLY IN HONG KONG FOR MANY YEARS.
MORE THAN 50 WERE INVOLVED IN MANUFACTURING IN HONG KONG, WITH A TOTAL INVESTMENT OF ABOUT 88 MILLION POUNDS STERLING.
BUT THIS INVESTMENT PALED IN COMPARISON WITH THAT OF THE
U.S., CHINA AND JAPAN, HE SAID.
UNITED KINGDOM INVESTMENT REPRESENTED LESS THAN SEVEN PER CENT OF TOTAL OVERSEAS INVESTMENT IN HONG KONG INDUSTRY, AND IN TRADING TERMS, THE UK PROVIDED ONLY FOUR PER CENT OF HONG KONG IMPORTS.
THIS LOW LEVEL OF UK INVOLVEMENT WAS DIFFICULT TO EXPLAIN. THERE WAS NO REASON WHY UK COMPANIES SHOULD NOT BE MORE INVOLVED IN HONG KONG, NOR WHY UK EXPORTS SHOULD NOT COMPETE SUCCESSFULLY IN THE HONG KONG MARKET.
/+ECONOMICALLY I