CONFIDENTIAL
242
002173 MDHIAN 2596
CONFIDENTIAL
FM BTC HONG KONG
TO DESKBY 19123OZ FCO
TELNO 335
OF 19113OZ NOVEMBER 91
INFO IMMEDIATE DTI
HKD $20/1
TOP COPY Q DIST?
DTI (FOR OT2 AND PEP).
YOUR TELNO 245: LORD CAITHNESS'S VISIT TO HONG KONG AND CHINA: 26 NOVEMBER TO 7 DECEMBER 1991.
1
FOLLOWING IS THE BRIEF ON BRITISH BUSINESS PROSPECTS AS
REQUESTED.
2.
BRITISH EXPORTS TO HONG KONG ARE CONSIDERABLE. THEY CONTINUE TO EXPAND, STEADILY BUT MODESTLY. OUR MARKET SHARE IS VERY DISAPPOINTING. BUSINESS PROSPECTS ARE SUBSUMED LARGELY IN THE MAMMOTH PROJECT BUSINESS PLANNED BY THE HONG KONG GOVERNMENT IN THE YEARS IMMEDIATELY AHEAD AND MOST NOTABLY THE AIRPORT.
3.
HONG KONG CONTINUES TO BE A MAJOR BUYER OF BRITISH GOODS. OUT EXPORTS IN 1990 TOTALLED POUNDS 1.28 MILLION. WE SELL WELL
ACROSS THE BOARD. PARTICULAR AREAS OF CONCENTRATION ARE SUPPLIES OF NEW PLANT AND EQUIPMENT TO ELECTRICITY GENERATING COMPANIES AND THE ONE GAS COMPANY, AND ALSO SUPPLIES TO THE TRANSPORT SECTOR, PARTICULARLY BUSES AND TRAINS. HONG KONG IS BRITAIN'S SEVENTEENTH LARGEST MARKET: WE SELL ABOUT THE SAME TO HONG KONG
AS WE SELL TO INDIA AND TWO OR THREE TIMES AS MUCH AS WE SELL TO CHINA. MOREOVER, ALL OUR TRADE WITH HONG KONG IS ON CLEAN COMMERCIAL TERMS AND UNLIKE OUR EXPORTS TO INDIA AND CHINA IS NOT DEPENDANT ON AID OR SOFT LOANS. IT IS THUS A VERY IMPORTANT
MARKET, MORE VALUABLE COMPARATIVELY THEREFORE EVEN THAN THE
FIGURES SUGGEST. SCARCELY A CITY LEGAL FIRM OR ACCOUNTING FIRM IS
NOT REPRESENTED IN HONG KONG. BRITISH ENGINEERING CONSULTANTS ARE PARTICULARLY STRONGLY REPRESENTED AS ARE MERCHANT BANKS AND UK INSURANCE INTERESTS. WE TALK, AS WE HAVE FOR SOME YEARS WITHOUT CHANGE, OF OUR INVISIBLES EXPORTS BEING WORTH POUNDS 1 BILLION A YEAR, BUT WE DO NOT REALLY KNOW: MY GUESS IS THAT THEY ARE SUBSTANTIALLY GREATER.
OUR MARKET SHARE OF THE VISIBLE TRADE IS, HOWEVER, VERY DISAPPOINTING. WE HAVE SOME 2.2 PERCENT OF THE TOTAL MARKET. WE
4.
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CONFIDENTIAL
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