4.
their resources on the export side.
It has become apparent to the
in
Trade Commission in the last two to three months that this is,
fact, happening. There has been a noticeable increase in visits by new firas and signs that British companies, already in the field, are
beginning to get tougher with their agents.
(ii) Some suppliers are passing on lower prices, and these are being passed on, in turn, by agents and distributors (e.g. Leyland cars); but this action is not always reciprocated by the agent at this end (e.g. Watson's lowering the price of whisky and other agents refusing to do so) During Sir Peter Thornton's visit there were one
or two pointed references to excessive local mark-ups.
(iii) While it is generally accepted that sterling is under- valued, the extent of its depreciation is in large measure a reflection
of the rate of inflation in Britain; in other words, increases in production costs cancel out any advantages derived from depreciation. As a consequence prices overseas tend, at the best, to be kept reasonably steady, rather than fall, at a time when our competitors'
prices are rising. This leads to a gradual rather than sudden improvement in our competitive position, a trend noticeable in Hong
Kong.
4.
Hopefully, therefore, one can look to an increase in the volume of British exports next year. Hong Kong is Britain's largest per capita
market in the Far East, despite the small share of the market.
Given
the nature of our exports it would be unwise and unrealistic to expect too dramatic an increase. The best opportunities will probably lie in
/plant.....