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MR MURRAY'S VISIT TO HONG KONG: CALL ON BRITISH TRADE COMMISSION, 24 SEPTEMBER
UK-HONG KONG TRADE
(Statistics of UK-Hong Kong trade are contained in Brief No HK9 in the briefs prepared for Mr Blaker)
1. Hong Kong is Britain's second largest export market in Asia (outside the Middle East), after Japan and well ahead of China. Nonetheless, Britain has less than 5% of the Hong Kong market. In 1967, our share was over 11%. Thereafter it declined steadily
to only 4.2% in 1976. Since then a determined effort has been
made to halt the slide, with the result that our share rose to 4.5% in 1977 and 4.7% in 1978, and looks like rising again this year. Japan (22.8%), China (16.7%), the USA (11.9%), Taiwan (6.8%) and Singapore (5.1%) all had a larger share of the market in 1978.
2. As a market for Hong Kong exports, Britain (9.5% in 1978) ranks third, after the United States (37.1%) and West Germany (10.9%). Britain's trade with Hong Kong is in substantial deficit. Although it is clearly illogical to attach too much importance to this, the Governor is aware of the political importance both of maintaining (and if possible reinforcing) Britain's position in the Hong Kong
market (as visible evidence of the British stake in, and therefore commitment to, Hong Kong) and of reducing the deficit (which, however illogically, can lead to resentment against Hong Kong among British businessmen). He has therefore lent his personal support to the campaign to promote British sales in the territory.
MAJOR BRITISH PROJECTS IN HONG KONG
(i) Castle Peak Power Station:
China Light and Power Company (CLP)
3. CLP is one of the two privately-owned electricity generating companies. It is developing a new power station at Castle Peak in the New Territories in partnership with Esso Eastern, a subsidiary of Exxon. In 1977 CLP's Chairman, Sir Lawrence Kadoorie, approached HMG for a negotiated contract for the supply of equipment for the new station. The Department of Industry assembled a package
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