TNAG-1036-FCO40-1286-Future-of-Hong-Kong-1981 — Page 75

CONFIDENTIAL

Reference...

J

Mr Friar

2

FEBLKGD.

HONG KONG.

cuol

НСК оно

RECEIVED IN REGISTRY NO. 51

12 FEB 1981

ECONOMIC IMPORTANCE FOR THE UK

OFAX OFFICER INDEX

Thank you for your note. I have the following comments.

PA

REGISTRY Action Taken

AW 'kX

ра

Para1. (a) The first sentence suggests that the lack of current data relates only to Hong Kong. Unfortunately, similar problems would arise in almost every assessment of bilateral economic relationships between the UK and other countries.

(b) The reference to ECGD could usefully be in a separate sentence. The main point here, I would suggest, is not the real value of commitments, but, that Hong Kong represents the ECGD's major market in terms of the amount at risk. Further, this share may increase in the future if the Castle Peak B project is succesfully completed.

(c) I would be inclined to add a sentence indicating the value to the

This UK of Hong Kong as an entry point to the Chinese market in the future. reflects the development of commercial links between China and Hong Kong and the plans for the development of the Chinese provinces surrounding Hong Kong.

Para 2. It could be added that Hong Kong represents one of our faster growing markets for manufactured goods outside of OPEC.

5

Para 3. In order to distinguish between the stocks and the flows referred to in this paragraph, I suggest you use the words "book value" in place of "current level" in the first line. In the seventh line insert "annual flow of" after "The latest figure for the"...

Unfortunately, we have no information on the extent of any other entrepôt trade for the UK.

Julian Exter

2 February 1981

JJM Exeter

G 71C/G

233 3700

CODE 18-77

CONFIDENTIAL

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