UK/HONG KONG TRADE
ANNEX B
(w139
1,
The UK's adverse balance of trade with Hong Kong is increasing; by 1973, our imports from her were over double our exports:
£ million
UK Imports
1970
128.4
1971
165.0
1972
184.7
1973
263.4
UK Exports
99.5
104.0
101.0
126.9
2.
Although Hong Kong was once a captive market for British products, she has progressively diversified her sources of imports. There is now no built-in preferencs for British goods and all products compete equally on the basis of price, delivery and technical backing. The expansion of Hong Kong's industrial and commercial sectors in recent years and the growth in external trade has been accompanied by a decline in the UK's share of the market to 6% in 1973. Conversely, our principal competitor, Japan, has increased hers to 25%. Britain ranks fourth as a supplier to the Hong Kong market, our major export items being machinery and transport equipment. The successful British Industrial Exhibition in 1972 and the British Motor Show this February have helped to improve Britain's image.
3. UK imports from Hong Kong have continued to increase over the past 10 years and in 1973 were up by 40% on 1972. Clothing accounts for helf the increase, despite voluntary restraints on cotton and polyester/cotton textile exports to Britain. Pressure from the knitwear industry for quota controls on imports from Hong Kong have been resisted by HMKG, as has similar pressure from the cutlery industry, and from some of our EEC partners for comprehensive restraints on imports of textiles.