TNAG-2126-FCO40-3036-Investment-in-Hong-Kong-1990 — Page 52

Future

- 2

-

8.

HK

growth

10% ра

have risen

point for UK exports (in '80s UK exports

in HG

8.7% worldwide). Gateway to

exports to China. JD guarantees present system (free port, market system, legal and professional systems etc) will

open

continue.

Others have even more positive estimates of HK's

value to UK. Have no quibble with these. Our figures err

9.

on side of caution. Businessmen in good position to know

value of HK to UK business, e.g. Honour Hong Kong say:

i) UK gains £1.2 billion pa in invisible earnings including dividends £137 million,

tourism to UK £66 million;

ii) although UK imported £1.9 billion from

HK in 1989, this import bill would not vanish if HK collapsed, while £2.3 billion

of exports would;

iii) 1000 companies in HK are UK-owned, or

have significant British interest of

2500 UK companies have agents

management.

here;

iv) Market value of these 1000 companies in

HK is over £20 billion, 40% of market;

v) "British" companies have net assets of

£2.5 and £3 billion. If non-British

in these companies are included,

between

shares

near 6 billion;

vi) Believe British portfolio investment is

30% of market capital in HK.