TNAG-2352-FCO40-3422-Visits-by-Lord-Caithness--Minister-of-State-for-Foreign-and--1991 — Page 127

RESTRICTED

054457

19

MDHIAN

INVESTMENT IN THE TERRITORY, ACCOUNTING FOR 7 PER CENT OF TOTAL FOREIGN INVESTMENT (THE U.S. IS TOP INVESTOR FOLLOWED BY JAPAN THEN CHINA). THERE COULD WELL BE OPPORTUNITIES FOR MORE JOINT VENTURES BETWEEN BRITISH AND HONG KONG FIRMS ONCE THE PADS PROJECTS GET UNDERWAY.

KEY POINTS

-

HONG KONG IS THE UK'S 18TH LARGEST EXPORT MARKET WITH ANNUAL EXPORTS WELL IN EXCESS OF GBP 1.2 BILLION.

UK SELLS TWICE AS MUCH TO HONG KONG AS IT DOES DIRECT TO CHINA AND ALMOST HALF AS MUCH AS IT SELLS TO JAPAN (WHICH

HAS AN ECONOMY 49 TIMES THE SIZE OF HONG KONG'S).

UK COMPANIES ARE WELL REPRESENTED IN THE SERVICES SECTOR WITH REVENUE FROM INVISIBLES ESTIMATED TO BE AT LEAST EQUAL TO THE VALUE OF OUR VISIBLE EXPORTS TO HONG KONG.

UK EXPORTS TO HONG KONG IN 1990 INCREASED BY 11.4 PER CENT AS COMPARED WITH AN INCREASE OF 10.8 PER CENT FOR UK EXPORTS WORLDWIDE.

UK RETAILERS HAVE BEEN ESTABLISHING OUTLETS IN HONG KONG OVER THE PAST FEW YEARS AND 7 MAJOR RETAILERS ARE NOW FIRMLY ESTABLISHED HERE.

OVER 400 BRITISH COMPANIES ARE ESTABLISHED IN HONG KONG AND A FURTHER 1,000 HAVE SIGNIFICANT BRITISH INVESTMENT.

WILSON

YYYY

DISTRIBUTION

18

ΜΑΙΝ

18

LIMITED

HKD

SIR J COLES

MR BURNS

PS/LORD CAITHNESS

NNNN

PAGE 4 RESTRICTED