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4.
rules and restrictions as those obtaining at present for China (without Hong Kong) and that
therefore
existing trade with Hong Kong would not to any
extent be replaced by increased trade with
China (LC) para,"aph 13);
(3) that Hong Kong's sterling balances would be
blocked and releasca would be made from them
only to selected claimants resident outside the
enlarged China;
(4) that China would take over U.X. property in
Hong Kong (which may be worth about 280 million) and there would be no compensation.
In Section II an attempt is made to make a
tentative assessment of potenti-l effects on the U.K. economy of possible developments accompanying (or consequential cn) the locs of Hong Kong, in our economic relations with China. In particular account is taken of possible.olicy action by either the U.K. or China which would call for modification of the assu. ptions in
paragraph 3.
I.
Errects on the X, economy (from loss of economic
rel. tions with Hong Kong only
5. The U.X. balance of payments on current account with Hong Kong in 1966 was upproximately as follows:
(a) U.K. Exports
(b) IPD
+ 66*
+ 10
(d) Imports
(c) Other
(a) U.K. Forces
(1) Earnings on
£ million
- 72*
-
10
(incomplete) + 5
Hong Kong sterl- ing balanco:
15
Total Credits + 81
Total Debits
97
Balance
- 16
»U.K. figures, with
arbitrary deduction in the case of
import to discount carriage insurance and frei, ht earnings from which, are diare arúod because to detailcâ information is evailul: as to 01 they accrue to the 1.5
RET
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