TNAG-1268-FCO40-1617-China-s-economic-relationship-with-Hong-Kong-Shenzhen-econom-1983 — Page 145

BACKGROUND NOTE

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1.

No authoritative statistics for invisibles are available

for this period, although the UK appears to run a surplus large

enough to cancel out the deficit in visible trade. It was

possibly in the order of £200 300 million in 1980.

2.

Invisibles benefits principally arise from such factors

as the employment of UK citizens in Hong Kong; use by Hong Kong

of the financial services of the City of London; pension and

retirement payments to expatriates who have worked in Hong

Kong.

3.

The small "budgetary transactions" referred to in the

answer consist principally of transfers under the Defence Costs

Agreement. Previously the UK provided a larger part of the

funding for this, but the Hong Kong Government now contribute

75% and HMG 25% of the funds involved. HMG derives benefit from

air traffic rights at Kai Tak airport, although it has proved difficult to quantify these.

4.

The visible trade figures are official Overseas Trade

Statistics prepared by the Department of Trade.

5.

The answer has been agreed with the Hong Kong Government,

the Department of Trade and ESID.

Hong Kong and General Department

April 1983

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