CONFIDENTIAL
Trade with Britain
Tasistence to
Imorta
25. Textiles still account for a high though declining
percentage of total exports (about 45%). Well over a half of
Hong Kong's exporta ro to three markets (United States,
United Kingdom an "estern Germany) but sales to some othe
countries in Tentera Europe are rapidly increasing. Hong
Kong consistently imports more than it exports but in recent
years the adverse balance has been more than made up by
inflows of capital and by earnings from shipping, insurance
and banking services and from tourism.
26. Hong Kong tride with the United Kingdom shows a
considerable imbalance in Hong Kong's favour. The British market, which took approximately 14% of Hong Kong's domestic exports in 1969, is important to the Colony not only becaure
of its size but also because of the benefits of Commonwealth
preference8. These provida Hong Kong industry with the opportunity to try out new products in a "domestic market"
which is lacking in Hong Kong. United Kingdom exports to Tiong Kong in 1969 totalled £82m. (or 8% of all Hong Kong imports). Our exports, while showing an increase in valuc in the last for years, represent a continually chrinking share of the Hong Kong market, of which Japan (23%), China
The main (18%) and the USA (13%) hold the largest shares.
British exports are machinery, non-metallic mineral
manufactures, textile yarns and transport equipment. 27. The success of Hong Kong exports has led to counter pressure from industries in importing countries for import restrictions cn Hong Kong goods. This pressure first developed in the field of cotton textiles and exports of such products to a number of countrics are now restricted by
/agreements..
CONFIDENTIAL
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