CONFIDENTIAL

Nature and Volume of Traus

TRADE AND INDUSTRY

In

24. Hong Kong's prosperity prior to 1950 rested on the

entrepot trade, principally with China, With the advent of a Communist Government in China this trade dwindled rapidly and in its placc industry has assumed a dominant role. 1949 Hong Kong's total trade (imports and exports) was

£317m: in 1969 it waa £2,011m. Since Hong Kong has to

export to live it has long been the policy of the Government to maintain free entry for all goods from abroad other than a few items on which there is a tariff for revenue purposes.

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CONFIDENTIAL

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