TNAG-2126-FCO40-3036-Investment-in-Hong-Kong-1990 — Page 175

C

2

3.

4.

Stock market analysts estimate that up to 30% of the total market capitalisation is owned by British portfolio investments which would give a figure of £15 billion. There is virtually no way of verifying this figure but even the wildest exaggeration is hopefully higher than "£2,000 million.'

All these figures do not take any account of any investments by British household name companies directly into Hong Kong such as Standard

Chartered Bank, Shell, Inchcape, B.A.T.'s and 400 other British companies in Hong Kong.

For his own rather obscure reasons the Governor of Hong Kong constantly belittles Britain's enterprise in Hong Kong, stressing the lack of British manufacturing investment (rather like Labour politicians carp at the success of the rejuvenated British economy not being involved in twilight industries such as ship building and low technology heavy industry). He forgets that British commercial investment in Hong Kong is extensive, complicated and touches almost every sector of the economy. He forgets that British investment and management involvement remains the major overseas influence in Hong Kong business.

British enterprise manages and controls the leading bank, telecommunications and electricity utilities, airline, real estate, trading, hotel and retail companies, all of which Britain can be justly proud of.

I have sent a copy of this letter to Nicholas Ridley who is lunching with us on Thursday, as I am sure the Department of Trade and Industry is interested in the extent of British enterprise in Hong Kong, which has tentacles throughout the Pacific Region.

I hope you will agree that the Foreign Office figure of "£2,000 million", minimised by the influence of Sir David Wilson, rather underestimates the British position in the Colony.

Cont/