SECRET
Other Invisible Farmings and Expenditures
The main Chinese invisible expenditures in Hong Kong are for services rendered by the latter in the fields of ship; ing, ship repairs, insurance and marketing. These are gradually falling as China improves her own port facilities, and extends her direct trading links with other countries, Invisible earnings are derived mainly from the operations of Chinese financial and commercial enterprises in Hong Kong; from the annual sale of £1-11⁄2 million worth of water to the Colony; and from a growing tourist trade. Such receipts are not, however, large compared with those from trade and remittancer.
Conclusion
It is estimated that China's net annual foreign exchange receipts from the above sources averaged some £80 million in the years 1960-62, £120-130 million in 1963-4; rising to £170-130 million in 1965 and £200-210 million in 1966 (over third of China's total earnings of foreign exchange). Such a rapid rate of increase is in any case unlikely to be maintained, and from now on Hong Kong's relative importance as a source of foreign exchange may even gradually decline. However, it could remain the largest single source of earnings for some years to come, and continues to perform a valuable role in developing China's commercial relations with the Free World.
SECRET
D.E.I. (DI 760)
(DI
Hay ngh
No comments yet.
Private notes are available after approval.