NOTHING TO BE WRITTEN IN THIS MARGIN
W(B)L 51-7406
assumed that industrialization has been the
panacea for all Hong Kong's problems. The
economy of Hong Kong today is the product of,
largely circumstantial, skill and good fortune,
usemavily
and is not based upon a firm economic foundation
To survive Hong Kong has to export, yet even-so
her visible trade always shows an healthy
imbalance in favour of imports which include
virtually all her food and raw material
requirements.
8. While Hong Kong was producing a number of
shoddy manufactures she was a threat to no one,
but the measure of her post-war success is wel
indieated by the threat she is now seen to pose
to medium and high-quality producers, whether
it be in textiles, wigs, cameras or transistors,
reauet
etc. The product of this success has been ever-
prasome for
increasing restrictions against Hong Kong's export
world trade. Already this year the Swedes,
negotialed for Norwegians and Canadians have conducted further
"voluntary" restraints negotiations with Hong
Kong, and agreements exist already with other
countries, including the U.S.A., in the "area
of concentration". Developing countries, on the
other hand, must concentrate on developing their
indigenous industries, and have, therefore, to
resist the encroachment of Hong Kong's trade.
ivade
Genstant and ever-increasing restrictions could
subside well cause the boom in Hong Kong to lose steam,
with consequent political, financial and economic
difficulties.
19. Even if the argument of Hong Kong's rela-
tive wealth/is to prevail against the grant of
we would
capital aid in present circumstances
ain present circums stances) w
have hoped that her entitlement to technical
assistance would not be questioned. We were
/ therefore