CONFIDENTIAL
Note of Meeting with the Right Honourable Herbert Bowden, C.B.E., M.P., Secretary of State for Commonwealth Affairs on 7th March
1967
Present
The Rt. Hon. Herbert Bowden, C.,B.E., M.P.,
Secretary of State for Commonwealth Affairs
Sir Arthur Snelling, K.C.M.G., K.C.V.O.,
Deputy Under-Secretary of State for Commonwealth Affairs
Mr. J.0. Moreton, C.M.G., M.C.,
Assistant Secretary of State, Far East and Pacific Department
Mr. 0.G. Forster, M.V.o.,
Private Secretary to the Secretary of State for
Commonwealth Affairs
The Hon. J.J. Cowperthwaite, C.M.G., O.B.E.,
Financial Secretary
The Hon. T.D. Sorby,
Director of Commerce and Industry
Mr. J.D. McGregor,
Assistant Director, Commerce & Industry Department
Mr. H.D. Miller,
Assistant Director, Commerce & Industry Department
Mr. D.G. Jeaffreson,
Administrative Officer, Commerce & Industry Department Mr. J. Black, M.B.E.,
Administrative Officer, Commerce & Industry Department
Mr. Sorby opened the meeting with a brief survey of Hong Kong's trade. Since 1963, imports had increased 36%, exports 50% and re-exports 57%. Textiles continued to dominate exports, yarn and fabrics account- ing for 16% and clothing 35%. Other significan t export items were toys, plastic flowers, metalware, radios and electronic components.
2.
The content of Hong Kong's exports was limited by Hong Kong's lack of resources. Hong Kong had often been adjured to diversify but in fact found it difficult to do so except within established lines, for example, from textiles into clothing.
3.
Hong Kong was also frequently advised to diversify markets so as to rely less on North America and Western Europe. But the tariff and non- tariff barriers of the developing countries made this a difficult task,
4.
In keeping with the particular circumstances of Hong Kong, Government policy was to maintain a liberal attitude towards imports. Mr. Sorby quoted, as an example of the advantages of this policy, the way in which the prices of foodstuffs, almost entirely imported, had remained pretty stable while wages had increased by 88% (probably 70% in real terms) since 1958. Policy on exports was to keep the channels of trade open as far as possible, despite Hong Kong's penetration of markets, by working towards reduction of existing and prevention of fresh tariff and non-tarrif barriers,
CONFIDENTIAL
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