TNAG-1646-FCO40-2293-Chinese-investment-in-Hong-Kong-1987 — Page 54

布政司署

香港下亞厘畢道

Ит

DIEU

ET EMON

Hos Thomas (Nee ryppy to from Als]

Raydan 1873

10291

6

GOVERNMENT SECRETARIAT LOWER ALBERT ROAD

HONG KONG

OUR REF.: ESB CR 13/2586/83

*YOUR

* YOUR REF.:HKK 090/2

CONFIDENTIAL

18 February 1987

Mr A.M. Layden,

Hong Kong Department,

Foreign and Commonwealth Office, London SW1A 2AH.

Dear Anthony,

2.

Thank you for your letter of 30 December 1986.

As regards capital outflow Dr McLean is currently working on an analysis of these flows in a balance of payments framework and attempting to deduce the motivations for some of these flows. This is not an easy exercise because there are many gaps in the data but if anything interesting comes out of this exercise Dr McLean or my successor will let you know.

3.

As regards investment in longer term, higher technology development the lack of reliable statistics makes it difficult to come to any firm conclusions. However, the following indicators do suggest a growing trend of capital investment in upgrading manufacturing capacity :

(a)

Survey on Overseas Investment 1986

I attach a copy of the Industry Department's

funt to Econome recent survey. It indicates that there has

adersus

been a relatively more extensive use of computer controlled machines for design and manufacturing by factories with overseas interests. As you will see it shows that of the 509 factories surveyed 177 had installed 978 CAD/CAM machines as compared with the 224 machines installed by 57 of the 442 factories surveyed in 1984. I'm afraid we do not have equivalent figures for the local sector.

/ (b)