TNAG-1237-FCO40-1550-Future-of-Hong-Kong-1983 — Page 157

HONG KONG ECONOMY

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7.

Between October and December last year Hong Kong Stock Market fell considerably. Due to several factors including worldwide recession which led to estimated growth rate of 2.4% in 1982-3 (compared to estimated 8%) and decline of property market, which has a major influence on Stock Market. Uncertainty about future also a factor.

volatile market than those in the West.

8.

It is a far more

This year, Stock Market has risen again as general economic outlook has improved. In his budget speech on 23 February the Financial Secretary projected 4% growth of GDP in real terms in 1983-4, and real growth of 7% in imports and exports (including re-exports).

ECONOMIC VALUE OF HONG KONG TO CHINA

9.

It is difficult to make a precise assessment of Hong Kong's contribution to the economy of China but it is a significant factor in discussions about the future of Hong Kong. China draws considerable economic benefit from Hong Kong as the

source of her foreign exchange, and as a source of investment

capital and of financial and commercial services.

Hong Kong and General Department

28 March 1983