IN CONFIDENCE
SECTION 2: THE ECONOMY
2.1 Most of Hong Kong is unproductive mountainland. Only 10% of the land is farmed, producing rice, vegetables, fruit, flowers, pigs and poultry. Agricultural production is sufficient to meet only a small proportion of local consumer demand. There is however
a considerable fishing industry, with 5,500 boats employing 36,000 people and meeting over 90% of the local demand for fish.
2.2 Small quantities of quartz, feldspar and kaolin are mined.
2.3
Hong Kong's principal asset is its sheltered harbour, the only developed deep water port on the China coast. From the establishment of Hong Kong as a centre for Britain's Far East trade in 1841 until about 1950, trade and commerce provided the main economic activity of the population. Then, when the Korean War brought a slump in trade with China, it became necessary to develop other sources of income, particularly since the population had expanded rapidly with the influx of refugees from China at the time of the Communist take-over. Hong Kong therefore turned to manufacturing, starting with textiles (which remains the dominant industry), but diversifying later into many other products, including plastics, electrical and electronic goods, scientific instruments, watches, and photographic and optical equipment.
2.4 Trade and commerce have however remained important. Recently, Hong Kong has also developed as a financial and tourist centre. In 1977, the major activities, with the proportion of employment they accounted for and the approximate contribution they made to the net output of the economy were:
Activity
Manufacturing
Wholesale and retail trade,
hotels and restaurants
Community, social and
personal services
Construction
% of Haployment
% of Output
4453
26%
20%
23%
16%
16%
7%
6%
/Transport
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