TNAG-1843-FCO40-2618-House-of-Commons-Select-Committee-on-Foreign-Affairs-enquiry-1989 — Page 151

ROFADD

BRIEF E: BRITISH REPRESENTATION IN HONG KONG

WHAT IS BEING DONE TO ENSURE THAT BRITISH INTERESTS ARE

DEVELOPED AND REPRESENTED UP TO AND AFTER 1997?

1.

Britain's Export Performance/Commercial presence in Hong Kong

British exports to Hong Kong are doing well. Our visible exports to Hong Kong were worth over £l billion in 1988. Invisible exports

estimated to amount to a further £l billion.

In 1988 Hong Kong was our 19th largest export market, second

largest in the far east after Japan.

Significant that although British exports direct to China have

stagnated (down 10%) our exports to China via Hong Kong should

substantial increase (up 30%).

In 1987 there were over 336 registered subsidiaries of British

companies in Hong Kong, second in number only the US.

·

There are 22 British banks and deposit taking companies in Hong

Kong. Most major UK stockbrokers are represented. 50 authorised insurers are either incorporated in the UK or have a UK controlling interest. UK related financial institutions probably account for

15-20 percent of the total turnover on the Hong Kong Stock Exchange.

British owned equities account for 30 percent of the total market

capitalisation of listed companies.

Official trade promotion efforts

All this provides a firm basis on which to build our commercial

activities in the territory in the future.

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We recently upgraded the post of Senior British Trade

Commissioner to Ambassadorial rank.