TNAG-1370-FCO40-1816-Relations-between-Hong-Kong-and-China-1985 — Page 5

Page

CONFIDENTIAL # 3

CRC INF 2/85

(CEC 2/85)

China's recent controls on

its foreign exchange spending and

their implications for the Hong Kong_economy

Contents

Introduction

China's foreign exchange position

in recent years

Depletion of foreign exchange reserve

since September 1984

Control on imports and foreign exchange spending imposed by China in 1985

Implications for the Hong Kong economy

(a) Importance of China as a market

for Hong Kong's domestic exports and re-exports

(b) Effect of China's recent import restrictions on Hong Kong's domestic exports and re-exports to China

Paragraph no.

1

2 - 7

8

-

21

22 26

27

-

29

30

-

36

(c)

Implications for the general

macroeconomic situation in

Hong Kong

37

· 40

Summary and conclusions

ONEIDENT!

41 48

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