TNAG-2126-FCO40-3036-Investment-in-Hong-Kong-1990 — Page 178

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JARDINE MATHESON

MATHESON & CO

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AIDE MEMOIRE UK/HK Trade 1989 Statistics

Although the UK trade statistics show a £925 million trade deficit, the real position is not nearly so serious if re-exports both ways round are deducted, as it reduces to £425 million.

Perhaps there should be a re-examination of the way in which the figures are presented, as the gross deficit trends to get played up by those who maintain HK is of no value to the U.K.:

HK Statistics

(HK$ K)

14,638

UK Statistics (f M)

Ex rate Ratio

Domestic exports

Re exports

Total exports:

Imports:

UK deficit:

Adjusted for re-exports

8,918

23,556

12.965

10,591

Exports:

HK$ M

14,638

£ M

1266

(11.56/£1)

Imports:

12,965

less re-exports (UK origin)

$3,151

9.814

842

(11.66/£1)

UK Deficit:

4,824

424

*After deducting assumed

margin of 15%.

Imports:

2,037

$11.56/£1

Exports:

Deficit:

1.112

925

$11.66/£1