-CONFIDENTIAL
Wade with Britain
asistenco to KROGELO
25. Textiles still account for a high though declining
percentage of fetal exports (about 45%).
Well over a half of
Hong Kong's exports go to three markets (United States,
United Kingdom on Western Germany) but sales to some othe
countries in Westem Europe are rapidly increasing. Tong
Kong consistently imports more than it exports but in recont
years the adverse balance has been more than made up by
inflows of capital and by carnings from shipping, insurance
and banking services and from tourism.
26. Hong Kong trade with the United Kingdom shows a
considerable imbalance in Hong Kong's favour. The Britich
market, which took approximately 14% of Hong Kong's domestic
exports in 1969, is important to the Colony not only becaucc
of its size but alco because of the benefits of Commonwealth
preferencaB. Those provide llong Kong industry with the
opportunity to try out new products in a "domestic market"
which le lacking in Hong Kong. United Kingdom exports to liong Kong in 1969 totalled 2827. (or 8% of all Hong Kong
imports). Our exports, while showing an increase in valuc
in the last few years, reprosant a continually shrinking share of the Hong Kong market, of which Japan (23%), China
(18%) and the USA (13%) hold the largest shares. The main
British exports are machinery, non-metallic mineral
manufactures, toxtile yarns and transport equipment.
27. The success of Hong Kong exports has led to counter pressure from industries in importing countries for import restrictions on Hong Kong goods. This prosauro first
developed in the field of cotton textiles and exports of auch
products to a number of countrice are now restricted by
/ agreemente
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CONBE