TNAG-1983-FCO40-2816-Presentation-of-UK-policy-on-Hong-Kong-to-the-media-1989 — Page 58

increased rapidly by thirteen times in value between 1981 and 1988.

China and Hong Kong are now each other's largest trading partners.

4.

Hong Kong is by far the largest source of external investment in

China, accounting for about two-thirds of the total. Investment by

Chinese banks and trading entities in Hong Kong is also large and

growing. It has been estimated that in the province of Guangdong,

adjacent to Hong Kong, there are now at least 1.5 to 2 million

workers employed directly or indirectly by Hong Kong firms, more

than the total number employed in the manufacturing sector in Hong

Kong itself. Some estimates are far higher. Each year Hong Kong people now make more than 12 million visits to China and some

750,000 overseas visitors travel to China through Hong Kong. This

large and growing volume of trade, manufacturing, investment and

tourism is creating strong links between the Hong Kong economy and

that of southern China, for which Hong Kong is now acting as

economic and financial link with the rest of the world.

5. The following points illustrate clearly Hong Kong's current

economic success:

-

GDP grew in real terms by 11.8% in 1986, 13.5% in 1987, 7.5% in

It is expected to grow by 6% in 1989.

1988.

Per capita GDP in 1988 was US$ 9,605: second in Asia only to

Japan and roughly the same as Singapore.

-

Retained imports of industrial machinery for manufacturing

increased by 26% in real terms in 1986, 18% in 1987, 13% in first

nine months of 1988.

Domestic exports grew by 16% in real terms in 1986, 23% in 1987,

8.9% in 1988.

-

Re-exports grew by 14% in real terms in 1986, by 46% in 1987 and

by 46% in 1988.

Unemployment was at a record low of 1.3% in the last quarter of

1988.

笼