TNAG-2126-FCO40-3036-Investment-in-Hong-Kong-1990 — Page 11

CONFIDENTIAL

FM FCO

TO IMMEDIATE BTC HONG KONG

TELNO 56

OF 17183OZ APRIL 90

INFO IMMEDIATE HONG KONG

42

CONFIDENTIAL

So

010266

MDHOAN 7089

thee (dild

RECEIVED IN

25 APR 1990

TRY

DE INDEX

YOUR TELNO 113: VALUE OF BRITAIN'S ECONOMIC STAKE IN HONG KONG

1. LORD SEFTON OF GARSTON HAS TABLED THE FOLLOWING QUESTION FOR WRITTEN ANSWER ON 19 APRIL:

QUOTE WHAT ECONOMIC OR FINANCIAL BENEFIT ACCRUED TO THE UK FROM OUR RELATIONSHIP WITH HONG KONG IN THE LAST THREE YEARS UNQUOTE.

2.

WE PROPOSED TO ANSWER THIS QUESTION AS FOLLOWS:

QUOTE

IN EACH OF THE LAST THREE YEARS, BRITAIN'S VISIBLE EXPORTS TO HONG KONG WERE WORTH

POUNDS MILLION

1987

1013

1988

1989

1031

1111

TOTAL ANNUAL INVISIBLE EARNINGS BY UK COMPANIES IN HONG KONG IN EACH OF THESE YEARS EXCEEDED POUNDS 1,000M

THE BRITISH COMMERCIAL PRESENCE AND BRITISH INVESTMENT IN HONG KONG ARE ALSO VERY EXTENSIVE. MORE THAN 1,000 HONG KONG COMPANIES HAVE BRITISH INVOLVEMENT THROUGH DIRECT CONTROL, INVESTMENT OR MANAGEMENT AND PRODUCE SIGNIFICANT RETURNS FOR THE UK. THE GROSS STOCK MARKET VALUE OF THESE COMPANIES

HAVE BEEN ESTIMATED AT SOME POUNDS 20 BILLION.

UNQUOTE.

3.

HURD

GRATEFUL FOR ANY COMMENTS DESKBY 1809OOZ.

YYYY

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CONFIDENTIAL