TNAG-2126-FCO40-3036-Investment-in-Hong-Kong-1990 — Page 51

Trade

UK ECONOMIC BENEFITS FROM HONG KONG

BULL POINTS

1.

UK direct exports to HK worth £1.1 billion 1989.

2.

1989, HK was UK's 2nd largest Far East market

Investment

3.

In

1980s

6th largest outside NA and Europe 19th largest in the world.

average

annual rate of UK direct

investment in HK £180 million.

4.

1987, book value of UK direct investment in Hong

Kong 1.9 billion (4% of total in Commonwealth).

5.

1987, UK investment in HK generated £486 million (17% of net earnings from Commonwealth investments).

Financial Services

6.

1989, 20 UK institutions operating as banks or DTCs

held 7.6% of HK's total deposits.

7.

HK has UK legal system, UK standards and practices: offers outstanding overseas business location for UK companies. Many major HK firms see UK as natural supplier (CLP-Castle Peak, MTRC and KCRC-trains, tunnels-E & M work).