TNAG-2307-FCO40-3343-UK-inward-investment-in-Hong-Kong-1991 — Page 43

FCO40 Hong Kong Department Records 聯邦事務部香港部檔案 All

DIE

ET MON

DROI

James Smith-Laittan Esq British Trade Commission HONG KONG

5 June 1990

Jean James

invest in britain bureau

lageer Way

in felul W 21/6 Mr Furness m

Despute the final sentence

15

INWARD

INVESTMENT le

Invest in

ZYDZONY

8.4%

B

Feint 9

Bureqy Smith Laitan

Britain Bureau

Department of Trade and Industry

& the FED thoughts below, I am Kingsgate House inclined to await i smith-

Cauttan's views before commenting.

H. Br. How enquered-foed

him

www awaitin

или имко

it-ki commenti

IBB PROMOTIONAL WORK IN HONG KONG

66–74 Victoria Street London SW1E 6SW

Fax 071-215 8451

Direct line 071-215

moo 201 Mhic 12/2

29

1991

During my very short visit to Hong Kong last week we were only able to talk briefly about the ideas I have for future promotional work in Hong Kong and I agreed to let you have something in writing.

Until recently, for obvious reasons, IBB's promotional activities both in Hong Kong and Taiwan have been somewhat restricted and we have had to sit back and watch our EC colleagues in particular in Taiwan, and the Americans, Australians, and Canadians in HK, conduct major promotional exercises. As has been pointed out elsewhere, in the case of HK it has had more to do with 1997 than 1992 and the promotions have been more to attract capital and brain-power to their respective countries than to attract manufacturing investment although I am sure some companies will have established manufacturing facilities. However a HK company having manufacturing facilities in Australia for example will not help them vis a vis trading with the EC after 1 Jan 1993.

It is reasonable to assume that there are some HK companies who are manufacturing products for export to the EC who therefore must have been considering setting up in the EC before the end of 1992. Because the rules have prevented us from conducting our normal promotional activities such as seminars which helps us to assess the potential of a market it has been impossible to determine exactly how many potential investors there might be but I would imagine that 30-40 would be a reasonable assumption. This is the figure we assessed in the case of Korea and Taiwan. (If your office has a more accurate assessment we would welcome it.)

Even on the basis of such relatively low figures IBB decided to conduct promotional events in Seoul and Taipei which have led as a direct result to three investments from Taiwan and two from Korea. The total investment and the number of jobs created have exceeded well over 100 times the expenditure IBB and related organisations

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