UK EYES A
earnings to their relevant Chinese foreign trade corporations and receive
about 5% commission in return;
-11 shipping and travel companies;
WGR
a ship repair company;
6 warehouse and cold storage firms;
-6 major department stores;
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THE ORIGINAL HAS BEEN RETAINED IN THE DEPARTMENT UNDER SECTION 3 (4) OF THE PUBLIC RECORDS ACT 1958
about 70-90 smaller local stores selling mainland products.
The theoretical justification, as opposed to the pragmatic need for foreign
exchange, for this massive involvement in Hong Kong's capitalistic commerce
seems to lie, where necessary, in the joint state private enterprises which
prior to 1957 were relatively common on the mainland before the complete
nationalisation of China's commerce and industry was effected.
14. Banking. Chinese banking activity occurs through 13 banks (out of a total 74
licenced) having 127 branches out of a total of 852 bank branches in Hong Kong.
Nine of these banks, of which Bank of China is the best known, are incorporated
on the mainland and the other four in Hong Kong. Virtually the complete range of
banking operations are undertaken including, recently introduced, the issue of
Renminbi travellers cheques for use in mainland China. Communist banks are reported
to be the largest purchasers of foreign exchange in Hong Kong ( 8 million per day
on average) and also deal in the international gold market which has developed in
Hong Kong in recent years. Apart from financing and providing the banking facilities
for communist commercial activities in Hong Kong the banks are also expected to play
a role in maximising foreign exchange earnings. Since 1970 there has been a steady
expansion of communist banking in Hong Kong as shown by the opening of new branches
(Table VIII below) and, for example, that in 1976 the Bank of China's deposits rose
by 43%. The communist banks are in the middle of a five year (1976-80) expansion
and maximisation of foreign exchange earnings plan.
This figure includes deposits in BOC London and Singapore but the bulk of the increase would have been in Hong Kong.
10
UK EYES A
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