TNAG-1624-FCO40-2238-Relations-between-Hong-Kong-and-China-1987 — Page 209

FCO40 Hong Kong Department Records 聯邦事務部香港部檔案 All

CONFIDENTIAL 機密

14

25.

Notwithstanding these substantial visible trade deficits, China's foreign exchange reserve position remained remarkably stable at around US$10-11 billion during 1985 and 1986, although this represented a drop

from the level in 1983 and 1984

At the present

(6).

level, China's foreign exchange reserves are sufficient to cover about three months of its import requirements.

26.

Since the visible trade deficits did not cause

an equivalent drain in its foreign exchange reserves,

China must have attracted a substantial net inflow of

capital over the past two years or so. This capital inflow comprises mainly loans (including trade credit) and

(6) China's foreign exchange and gold reserves

As at end of

Foreign exchange

reserves

(US$ Bn)

Gold

reserves

(million

troy ounces)

1980

2.26

12.80

1981

4.77

12.67

1982

11.13

12.67

1983

14.34

12.67

1984

14.42

12.67

1985

11.91

12.67

1986

10.50

12.67

1987

12.58

12.67

(1st

half)

Sources :

Statistical Yearbook of China 1986, NCNA press releases dated 5 April and 6 August 1987.

(The exceptionally stable level of gold reserves over the past years tends to cast doubt on the reliability of those figures.)

G.F. 326

CONFIDENTIAL **

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