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real growth patterns for the past six years can be discussed. Some gaps remain, such as allowance for changes in raw material stocks, but the staff in Hong Kong deserve to be congratulated.
7. The question might now be raised again of the prospects of pro- gressing towards some GNP statistics. What are the possibilities for estimating net property income from abroad?
1
External balance sheet and capital account
8. It would also be of great interest to know something of Hong Kong's external balance of assets and liabilities (apart from the official sterling balances and the changes from year to year. Chapter 3 refers to the two-way flow of funds through the foreign exchange market but no figures are given of these flows. What are the prospects of getting statistics of capital inflows and outflows? It would be of particular interest to have information of foreign investment in Hong Kong with some industry breakdown and country source. Likewise the extent and direction of Hong Kong outward investment with particular reference to the UK and South-East Asian countries would be of interest.
Visible trade balance
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9. Unlike previous years, the document this year contains no comment on the merchandise trade deficit for the full calendar year (even though the figures were available see footnote to page 4). Nor is there any comment on the 9 months figures referred to in Table 5. The 9-month comparison for 1973 is also misleading because it shows a reduced deficit. The calendar year's deficit (HK 3005m.) was a good deal higher than in 1972 (HK $2365m.) though still below the 1971 level (HK 3092m.).
Trade growth
10. The nine-month figures are also misleading as a guide to the growth of trade in 1973. Thus paragraph 10 shows a 28% increase for exports and 25% for imports. The full year growth figures were 34% for exports and 33% for imports.
Trade indices
11.
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There is a much heavier concentration this year on percentage growth figures see the detailed figures from pages 5 to 10 - while certain other indices given last year have been omitted. Percentage share figures are particularly missed, eg. showing the UK's share of total imports as compared with other main sources, or the relative importance of food, raw materials, capital goods, etc. in the composi- tion of imports.
12.
A wider variety of indices would give a more balanced picture. For example, paragraphs 35 and 36-and Table 10 contrast the strong (and welcome) growth of exports to Japan (116%) with the relatively weak growth of exports to the USA (10%). The picture changes, how- ever, if one, adds certain other comparisons such as (i) the absolute increase in exports was larger to the USA (+HK 472m) than to Japan (+ IK 388m), (ii) the USA remained by far Hong Kong's most important customer, taking 38% of total 1973 exports as against less than 6% taken by Japan, and (iii) the massive bilateral trade surplus
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