TNAG-2126-FCO40-3036-Investment-in-Hong-Kong-1990 — Page 125

20-03-1990

16:22

CSU D4

01 217 4214 P.

BACKGROUND NOTE

1. The reply to the PQ drew on the only available figures of the value of UK direct investment in Hong Kong. The figures are complied using internationally accepted methods as recommended by the IMF and the OECD.

2. The main thrust of the correspondence is that the market value of UK controlled companies and UK managed companies is considerably higher than the book value and that the UK'S commercial interests are more extensive than the figures given in the answer. This is not disputed. There are no estimates of the market value of UK direct investment. Neither the methodology nor the information is available to derive such estimates. Also,

the reply pointed out, information is

information is only available for certain categories.

સેક

3. The opportunity has been taken in the reply to point out that the statistics on direct investment have been compiled using information provided under statute by the companies with overseas direct investment links. The rules on confidentiality prevent the disclosure of the figures which particular companies supplied in response to the Census of Overseas Assets. However, it should be noted that according to the public records, Matheson & Co Ltd is owned by a Hong Kong based company, Jardine Matheson Holdings Ltd, which has as its ultimate parent a Bermuda company, Jardine Matheson Holdings Ltd.

D4/1