TNAG-1457-FCO40-1981-Relations-between-Hong-Kong-and-China-1986 — Page 118

G F 12N

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38.

Finally, the following figures give some indication of the close relationship between Hong Kong and China. It is reported that 134 overseas enterprises from 12 countries and regions established their representative offices in China in 1984. Of these enterprises, 50 were from Japan, 42 from Hong Kong and Macau (mostly from Hong Kong), 19 from the US, five from West Germany, four from Switzerland, five from UK, three from Denmark, two from France, and one each from Holland, Austria, Belgium and

Canada.

Conclusion

39.

Although the quantitative evidence is partial, the above analysis confirms the importance of Hong Kong's financial sector to China. The increasing volume of financial transactions between Hong Kong and China (paragraphs 5 to 7) demonstrates the strengthening financial relationship between the two places over the past years. With the renewed acceleration of the modernizations programme in China in recent years, Hong Kong has begun to re-assert its net creditor position in providing finance to support this programme (paragraph 8).

40.

Hong Kong firms and institutions have not only provided funds to support development projects in China (paragraphs 35 to 37), but have contributed to the updating of management skills, the provision of expertise and the promotion of technology transfer to China (paragraphs 12, 14, and 17 to 29). All these are much needed for the successful launching of China's modernizations programme, and should also help in the diversification and internationalization of China's financial system and practices in ways compatible with China's development into a modern economy.

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