TNAG-2978-FCO40-1470-Trade-relations-between-Hong-Kong-and-the-UK-1982 — Page 114

EIS

British Trade Commission in Hong Kong

Mail Address GPO Box No 523 Hong Kong

Telex HX 73031 Cable Address Uktrade Hong Kong Telephone 5-230176

9th Floor Bank of America Tower 12 Harcourt Road Hong Kong

Department of Trade

Lime Grove

Eastcote

Ruislip

Middlesex HA4 25G

WED

Pr

Your reference

Our reference

ECO 092/1

Date

8th April 1982

WP

よ

14/6

QUARTERLY ECONOMIC REPORT: 31 March 1982

NAME OF COUNTRY: HONG KONG AND MACAO

RATE OF EXCHANGE: HONG KONG DOLLARS 10.27 = £1 STERLING : MACAO PATACAS 10.87 = £1 STERLING

In presenting his first budget on 24 February 1982 John Brembridge, the Financial Secretary pointed out that Hong Kong had achieved a growth rate of 10% in GDP and of 12% in imports (both in real terms) in 1981. He predicted further increases in GDP and imports of 8% and 12% respectively during the current financial year. recommended a number of tax concessions (estimated to amount to about HK$1.37 billion). These included the removal of the 15% tax on foreign currency deposits and an increase in depreciation tax allowance on plant and equipment from 35% to 55%.

He

2. The main areas of government spending in the coming years include the establishment of a Capital Works Reserve Fund of HK$11 billion of which HK$6.4 billion will be spent on transport, roads and civil engineering work. The balance will be allocated to New Territories town developments.

3.

Provisional external trade figures for 1981 indicated increases of 24% in imports (to HK$138,375 million) and of 18% in domestic exports (to HK$80,423 million). Hong Kong's re-exports during 1981 increased by 39% to HK$41739 million. Britain's exports to Hong Kong in 1981 (based on Hong Kong Government statistics) were HK$6282 million an increase of 15% over 1980.

4. Recent contracts awarded to British companies include the provision of signal equipment worth & sterling 3.5 million for the Mass Transit Railway Corporation's Island Line and & sterling 14 million for a 45,000 ton bulk carrier.

5. The number of visitors to Hong Kong continues to grow.

During 1981 there were more than 2.5 million, representing a 10.2% increase on 1930 (it has been estimated that tourism contributed HK $7.5 billion to the economy in 1931).

6.

Macac/....

Every effort isas fe to ensure that the internation giver herein is accurato, but no lagd respon Kility in accepted for any errors er oursions in d.~ information and no responsibility is on supted la regard to the standing of any lama, compon' in or individual-apurdian”