TNAG-1370-FCO40-1816-Relations-between-Hong-Kong-and-China-1985 — Page 7

ہے اس کی ان حبه لعنة الله

CONFIDENTIAL # #

2

-

Visible trade

balance

Net change

in other balance of

payments items

Change in

Foreign# exchange

foreign

exchange

Gold#

reserves

reserves

(US$Mn)

(US$Mn)

(US$ Mn)

(US$Mn)

reserves

(million

troy ounces)

1978

-1,140

+352

-788

1,557

12.80

1979

-2,010

+2,607

+597

2,154

12.80

1980

-1,280

+1,388

+108

2,262

12.80

1981

+2,511

+2,511

4,773

12.67

1982

+3,060

+3,292

+6,352

11,125

12.67

1983

+840

+2,377

+3,217

14,342

12.67

Source:

# End of year figure.

People's Republic of China Yearbook 1984 China Newsletter No. 49, March-April 1984 China Newsletter No. 57, July - August 1985

4.

1978 was the first year in which China incurred a substantial visible trade deficit, of US$1.1 billion, as a consequence of launching massive

development projects which entailed substantial imports of foreign technology and machinery.

By the end of 1978, China's foreign exchange reserves had fallen to a low of US$1.6 billion (equivalent to only 1.7 months' worth of imports at that time). As a result, China suffered a

foreign currency squeeze and was forced to seek both short and long term loans in the international money

market.

CONCIDENTIA

Kilk guz