TNAG-0056-FCO40-92-Evacuation-plan-1967 — Page 136

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(THE DOCUMENT IS THE PROPERTY OF HER BRITANNIC MAJESTY'S GOVERNMENT

been skinny miled. It is issued

OPDO (DR) (67) 54

or the personal Use of M w s Carter.

29th August, 1967

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COPY. NO

CABINET

DEFENCE AND OVERSEA POLICY (OFFICIAL) COMMITTEE

HONG KONG:

DEFENCE REVIEW WORKING PARTY

EVACUATI CONTINGENCY PLANNING FOR AN

EVACUATION (FINANCIAL AND ECONOMIC)

Memorandum by the Treasury

(25)

Introduction

We

MNB 4/2

were asked (paragraph 21 of K(67)2) to consider what

immediate action would be necessary on financial and economic matters in

the event of a forced evacuation from Hong Kong. We have thought it

desirable also to consider the need for action in this field in

a situation of continued disturbance (paragraph 12 below).

U.K. assets in Hong Kong

2. The book value of direct U.K. investments in Hong Kong (excluding

oil, insurance and banking) at end 1964 was £26 million. Including investment in insurance and banking and over the three years 1963-65

taken together the new U.K. investment totalled £7.1 million. Earnings

from direct investments for the same three years totalled £15.8 million.

As well as direct investment there is probably a significant portfolio

investment.

3. In so far as these investments are represented by fixed physical ascets such as buildings (and/or by goodwill) there is clearly no prospect of doing anything to salvage them in the event of forced evacuation. (At

a later stage the question might arise whether in a different political

and emotional climate there might be a possibility of getting compensation

for them under some deal involving trade or financial concessions to China.) 4. The problem of movable assets like ships (particularly important),

commercial stocks of goods, and such items as precious stones and precious metals (including bullion) will be considered in the separate

exercise concerned with the physical movement of persons and property.

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