TNAG-1155-FCO40-1435-Visits-by-Members-of-Parliament-(MPs)-to-Hong-Kong-1982 — Page 214

Annex 4

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13. By any standard, Hong Kong is a very good export market

for the UK. The relative performance of the UK in Hong Kong

compares favourably with its performance in world trade

generally, particularly in comparison with like competitors

such as the Federal Republic of Germany, France and Italy.

Also, the UK's balance of trade in manufactures with Hong Kong

compares well with the UK's trade with the main industrialised

countries. (For details see Annex 4).

Invisible trade and others

14.

Being a major commercial and financial centre, Hong Kong

handles a substantial amount of banking and insurance business,

a considerable portion of which is conducted by UK companies.

There are at present 8 banks and 21 deposit-taking companies

of UK origin operating in Hong Kong. Another 8 UK banks

maintain representative offices in Hong Kong. In the insurance

field, 62 insurance companies from the UK are carrying on

various types of insurance business in Hong Kong.

15. The UK's invisible earnings are also boosted by the

prevalence of British consulting engineers in Hong Kong. UK

contracting companies do well in the construction field. In

particular, in the public works sector, over the past five

years UK contracting companies were awarded contracts with

a value totalling £57 million. In addition, UK companies have

been awarded Mass Transit contracts totalling £170 million in

respect of the Modified Initial System and the Tsuen Wan

Extension, plus another £123 million in respect of the Island

Line. On average, some 20% of Hong Kong's MTR contracts have

gone to UK contractors and there is plenty of opportunity for

them to win more business, particularly as a large number of

the Island Line contracts have yet to be let.

16.

The UK also derives considerable benefits from Hong Kong's

landing rights. Furthermore, two UK airlines, British Airways

and..

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