LORD GORONWY-ROBERTS'S MEETING WITH MR KEVIN SINCLAIR OF THE SOUTH CHINA MORNING POST - 10 DECEMBER 1975
BRIEF NO. 9
HONG KONG'S GENERAL TRADING INTERESTS
Line to Take
1. Hong Kong has a favourable balance of trade with the United Kingdom, averaging 2:1 in her favour.
2. Britain's share of the Hong Kong market has dwindled in recent years, falling from 9% in 1964 to 5% in 1974. Against this the UK remains the second largest market for Hong Kong's products, taking 141% of Hong Kong's total exports.
3. The special relationship which has existed between the UK and Hong Kong continues, and trade matters are freely discussed by officials
of the two countries as occasion demands.
4.
Apart from the Textiles Agreement between the EEC and Hong Kong,
initialled earlier this year, Hong Kong is the second biggest bene- ficiary of the EEC's Generalised Scheme of Preference.
This year
she has, for the first time, been included as a beneficiary on non-leather footwear. In 1972 she accounted for about 12% of the
EEC's imports of industrial items under the GSP and is, therefore, well placed to benefit from the increases proposed in the quotas and ceilings.
5. There have been suggestions in the press both in this country and overseas that UK is considering introducing import restraints. This is not a step the UK would lightly take. I can only say that, should action to restrict imports in certain categories be taken, it would be a firm indication of the seriousness with which HMG views
the position concerning the import of the items placed under restraint.