only developed deep water port on the China coast, and its work force.
There is little Government intervention in the economy, except in the
social and public works field, where its role is expanding.
5. Hong Kong is now an international financial centre, with a highly
efficient communications and transport system. Low taxation is the
principal stimulus for foreign investment, which the Government welcomes
because of the capital, and the technical and managerial knowledge which
it brings into the Territory. No distinction is made between local and
foreign businesses for tax purposes.
6. Inflation was 6% and unemployment 2.5% at the end of 1978.
OVERSEAS TRADE
7.
The value of Hong Kong's domestic exports in 1978 was HK$40, 711m
(approx £4,285 million). The principal products were: textiles and clothing
(45%), electrical machinery and appliances (12%), scientific, photographic
and optical goods (8%), and miscellaneous manufactured goods (16%).
8. Hong Kong's imports in 1978 totalled HK$63, 056 million (approx £6,637
million). They consisted mostly of foodstuffs, raw materials and semi-finished
products for Hong Kong's manufacturing industries, fuel and capital equipment.
This leaves a considerable deficit on visible trade, which is largely offset
by invisible earnings, mainly transport and tourism.
9. Principal export markets were (1978)
HK$ million
%
United States
15,125
37.1
Federal Republic of Germany
4,426
10.9
United Kingdom
3.971
9.5
(EEC countries
10,868)
Japan
1,856
4.6
Australia
1,494
3.7
Principal suppliers (1978) were:
HK$ million
%
Japan
14,405
22.8
2