TNAG-2606-FCO40-3797-International-support-from-Japan-regarding-the-future-of-Hon-1992 — Page 43

fifth of Japan's imports from China go through Hong Kong. Furthermore,

a substantial portion of loans to China by Japanese financial institutions

is arranged in or through Hong Kong.

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(THE ATTRACTIONS OF HONG KONG TO JAPANESE COMPANIES)

To Japan, the reason why Hong Kong has increased its importance

is the attractions of Hong Kong. Hong Kong has been very attractive to

Japanese people and companies. Although the source of attraction is

manifold, I can enumerate them, among others, as follow. I think that

everybody agrees on these points.

Firstly, Hong kong as the centre for transport:

Hong Kong's deep sea harbour with modern and efficient support

facilities to deal with containers and cargoes is the best one along the

Chinese Coast and one of the top ranking ones in the world. And Hong

Kong is situated at the very centre of the international air links in the

Asian and Pacific area.

Secondly, Hong Kong as the centre of international finance and

information and communication:

There were 163 licenced banks in Hong Kong, of which 33 were Japanese

owned at the end of 1991. More than 60 Japanese financial institutions

have some kind of representation here. Hong Kong is equipped with

basic telecommunication services which are extensive and efficient and

enjoys the wide network of the news media.

Thirdly, Hong Kong as situated next to China:

The deepening of interdependence between Hong Kong and China,

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