g.

CONFIDENTIAL

Whatever the eventual outcome of this study I think

such accountancy only part of the picture. Hong Kong

offers a market of about $2,200 m. a year for industrial

goods and raw materials which will rise fast; its

imports from China finance over one-third of that

country's imports from third countries including the

United Kingdom; it provides a trading platform on the

edge of the biggest country in the world and in the

centre of the Western Pacific, an area likely to

develop as quickly as any other in the next decade,

except perhaps the Middle East. There is a built-in

bias in favour of the United Kingdom. Consequently

United Kingdom exporters should be urged to pay Hong

Kong more attention as a market, as an entrepôt and

as a base for operations in the Pacific area, as well

as a shop window. For this reason, I attached great

importance to the visit in September of the Secretary

of State for Trade, who I believe left fully sharing

the above view. We have a vigorous and well directed

United Kingdom Trade Commission in Hong Kong, and

United Kingdom exportes ready to make the effort and

to assure the necessary supplies can expect all possible

official help from it.

CONFIDENTIAL

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