UK EYES A

main source of Hong Kong's re-exports providing 27% against Japan who ranked

second providing 14%. By exporting goods through Hong Kong China can reach export

markets which would otherwise be closed (eg Indonesia) and can he used to break

into and build up markets where consumer and/or political resistance against

communist Chinese goods might be encountered (eg USA and Thailand).

probably a factor in the reexports to Japan prior to the improvement in relations

in 1972-73. Hong Kong even enables a clandestine trade with Taiwan to, he maintained.

Table VII shows the main destinations of Chinese reexports.

TABLE VII

This was

THIS IS A COPY

THE ORIGINAL HAS BEEN RETAINED IN THE DEPARTMENT UNDER SECTION 3 (4) OF THE

CHINESE REEXPORTS BY COUNTRY OF DESTINATION

(US & PUBS RECORDS ACT 1958

m.

% of total Chinese

Country of Destination

1972 1973 1974 1975

1976

1977

Indonesia

23242

888

58

62

55

82

reexports (1976)

17

Singapore

21

34

38

49

51

10

USA

12

17

18

28

50

10

Japan

22

56

29

28

46

9

Taiwan

8

17

21

26

39

Co

8

Switzerland

11

16

22

28

19

4

Thailand

3

11

19

4

Others (eg Australia,

FRG)

69

111

119

127

184

38

Total Re-exports

175 309 312

353

490

100

Source: Hong Kong Annual Reviews of Overseas Trade.

11.

Trading Facilities.

Apart from selling to and through Hong Kong China also

exploits the unique trading position of Hong Kong in the world's commerce by using

it as a shop window (over the past 18 months it has increasingly staged mini-fairs

8

UK EYES A

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