TNAG-0938-FCO40-1157-Visit-of-John-Nott--Secretary-of-State-for-Trade--to-Hong-Ko-1980 — Page 76

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are with purely Hong Kong interests, and are largely processing contracts (generally with the foreign party providing machinery in return for a reduction in the processing fee) or straightforward compensation trade arrangements. There are a small number of joint equity ventures, the average value of which is rather less than £100,000, but there have been instances of foreign investments of up to £8.5m.

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Both Guangdong and Fujian have opened provincial commercial representation offices in Hong Kong and a branch of the China International Trust and Investment Corporation has been set up in Hong Kong specifically for the purpose of bringing together foreign and Chinese partners for co-operative ventures.

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Thus, for any country, Hong Kong now offers opportunities as an entry point into China. The UK enjoys three particular advantages in this context:

i) the administration of Hong Kong is British, the commercial

language is English, business is governed by a British commercial law and there are long traditions of trade with

Britain.

ii)

iii)

there is a well-established British community, including major trading agency groups and banks.

the Chinese fully recognise Hong Kong's British connection and have proved willing to discuss future co-operative planning, particularly with regard to the opening up of Guangdong Province. Already, a number of British companies have won substantial Chinese business through a presence in Hong Kong. Hong Kong, for her part, welcomes Sino-British co-operation in the development of southern China and there is a growing community of interest which we can and should

exploit.