Lord Rhodes KG PC DFO House of Lords LONDON SW 1
Lord Goronwy-Roberts
Thank you for your letter dated 2 February 1977 concerning the importance of British exports to Hong Kong.
I fully share your sentiments, for it is disturbing to note that United Kingdom's share of Hong Kong's total imports is now under 5%, compared with 11% a decade ago. Although our exports grew by 30% in terma of value in 1976 over 1975, our imports from Hong Kong increased by 43%.
Our bilateral trade deficit is the cause of some concern.
We have for some time been pressing on the Hong Kong Government the argument that they, as well as HMG, have an
interest in a better balance in our bilateral trade. Suah
a better balance would make it less difficult to resist
pressure for restrictions on Hong Kong's imports into this country. I am glad to be able to say, therefore, that the Hong Kong Trade Development Council, with the ɑlose co-operation of the British Trade Commission in Hong Kong, is carrying out investigations into British Sales in th Hong Kong market and I am hopeful that this will produce some pointers which will enable us to improve our export performance, There are plans also for a 30-strong buying mission to the UK in May, organized by the Hong Kong General
Chamber of Commerce, and also for several outward missions to Hong Kong in 1977 arranged by British exporting organiza- tions. These, too, I hope will yield good results.
You will be well aware of the success of British firms
in obtaining contracts for the Mass Transit Railway which is now being built in Hong Kong. These contracts, which were awarded last year, are worth £56 million. We hope
that British industry will be equally successful in bidding
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