dr/February/6.26
CONFIDENTIAL
21.
Having
identified those companies with significant interests
in Hong Kong, the DTI are now doing a second round of analysis which will aim to discover which of those companies has:
a.
b.
a significant proportion of its turnover and profit generated in Hong Kong; and
a relatively less robust financial position, which would
make it difficult to withstand a serious setback in Hong
Kong.
22. DTI will then follow this up with an analysis of the
potential impact
these more vulnerable companies, perhaps Trafalgar House seems a likely candidate.
on
assisted by the Bank.
ECGD
23. As at 28 February 1993, ECGD's exposure and commitments to
China and Hong Kong were as follows:
£m
China
Hong Kong
Exposure
1480
1409
Commitments
179
1495
TOTAL
1659
2904
24.
to
Exposure relates
guarantees that have been issued, and
commitments relates to business for which there is a reasonably high probability of a guarantee being issued.
25. ECGD exposure is expressed as the maximum theoretical liability, eg for buyer credits the total export credit loan plus estimated interest thereon plus three months delay interest. Consequently whilst exposure on Hong Kong is shown at £1.4 billion, the amount of drawings from loans less repayments to date (ie the amount actually outstanding at any one time) will be
CONFIDENTIAL
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