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BRIEF
UK/HONG KONG TRADE
TRADE PATTERN
1.
The most obvious and disturbing feature is the substantial trade balance in favour of Hong Kong. This year has seen the deteri- oration of our balance to more than 2:1 in Hong Kong's favour. Despite the world trade recession, which was felt substantially in Hong Kong, her exports to the UK maintained a steady level during 1974 and 1975, following rapid growth in 1973. Britain's exports, however, declined in value terms slightly in 1975, although partial recovery is discernable in 1976.
UK EXPORTS TO HONG KONG
2. Over the last decade our share of the expanding Hong Kong market has declined from over 10% to under 5% in 1975. Although there are many areas of Hong Kong's imports in which we cannot be competitive, such as basic foodstuffs imported largely from China, there is evidence to suggest that we are losing out to competitors in the important manufacturing sectors. Britain is now placed sixth among Hong Kong's suppliers (behind Japan, China, the USA, Taiwan and Malaysia). However,
However, the considerable success of British companies in bidding for the underground railway project (see paragraph 5 below) has stimulated interest in the market in the UK and we should
continue to have good prospects in machinery, including machine tools, transport equipment and a range of high quality consumer items.
EXPORT PROMOTION EFFORT IN UK
3.
One of the major problems is in overcoming the apathy of British
businessmen arising from the view that Hong Kong is a traditional British market and that they have some prior claim there. The British Overseas Trade Board's Hong Kong Trade Advisory Group does its best
to overcome this view and to bring export opportunities in Hong Kong
to the attention of British businessmen. The British Trade Commission
in Hong Kong is, of course, also active in the same field. One recent
success has been in the man-made fibres field. After considerable prompting, Courtauld's carried out a market survey in Hong Kong and,
/according
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