2,

C.

does

Chima

What advantages do tha

Men derve from Hong Kong? (

Contacts with the Outside world.

Heną Kaną krovides China wi12

window

a

and with

on

the outside world

Om

easy

point of

access

for trade and

travel.

St has served.

as

a

jumping

from

which to mounta

r

The bulk of

China's exports to Hong Kong are foodstuffs (40-50%); "here

is also a considerable mairhet-

for Chinese textiles, simple

machinery and other

manufactured goods.

2.

If Excand centre

Subversive activities against the free

world

Subverswe

particularly in the feed of

propaganda.

Foreyn Exchange Earnings.

earns

a large surplus

170

with the Colony (Zara

which vasaro

China

on visible Grade

m. in

1966).

This trade Surplus, from

From L

Overseas Chinese than

remittances by

Baton or

Through Hong

Koną (estimated at £30-35 m, in 1966)

and from the operations of

Imanual

Hong Kong,

Chinese

and Commercial enterprises in

total foreign exchange

earnings estimated at ₤200-210 m.

accrued in 1966 for

Over

a

thard of China's

total earnings of foreyn exchange).

{

regularly

3. These earnings, which are converted into sterling, have played a major role

Li

financing na China's trade defects with other arear of the free

world

with the industrial countries Eureze in 1959-60

Western Europe

1965-66

and

and again

in

in 12 Canada, Australia

سا

other mayer grain exporters to China,

4. What that 7500 for Tait yood

Garying

4. Earnings in 1960-62 averaged ammalam Some £80 m. Their rapid rate of increase by

is unhely to be mamtained and from

1966

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