TNAG-1268-FCO40-1617-China-s-economic-relationship-with-Hong-Kong-Shenzhen-econom-1983 — Page 54

G.F. 326

- 23

23.

Extending the series further to 1981 and

1982, China's gross foreign exchange earnings from

Hong Kong in these two years are estimated to have

been US$7,140 million and US$7,366 million

respectively. In the five years prior to 1982,

China's gross foreign exchange earnings from Hong

Kong grew rapidly, at 25% p.a.. In terms of China's

total foreign exchange earnings, the percentage share contributed by Hong Kong was slightly more than a quarter during the years 1977 to 1979 and increased

slightly to 29% in 1980. (Note: this is somewhat

less than the conventional one-third normally cited

during this period). It is uncertain whether this

percentage share increased further in 1981 and 1982

because comparable statistics on China's total

foreign exchange earnings are not available. increase in the importance of Hong Kong's

contribution, in both absolute and relative terms,

was partly related to the revival of Hong Kong's

entrepot trade with China.

24.

The

If foreign exchange earnings contributed by Hong Kong are considered in net terms, the percentage share in terms of China's total foreign exchange

earnings decreased somewhat from 27% in 1977 and 1978

to 23% in 1979 and 1980. Extending the series

further to 1981 and 1982, China's net foreign

exchange earnings from Hong Kong in these two

respective years are estimated at US$5,077 million

and US$5,320 million. In the five years prior to 1982, China's net foreign exchange earnings from Hong Kong had also been growing rapidly at 17% p.a.. Again, as comparable statistics on China's total

foreign exchange earnings are not available, the

percentage share represented by the net contribution

of Hong Kong in 1981 and 1982 cannot be ascertained.

CONFIDENTIAL #3