BRIEF 4
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British investment has fallen behind the USA and Japan
in recent years - a factor that may have contributed to our relatively poor export performance. Latest figures show UK investment valued at £16m covering 36 establishments. This represents 7% of total foreign investment, compared with 47% for the USA and 19% for Japan. Electronics, textiles and chemical products are the main beneficiaries.
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UK IMPORTS FROM HONG KONG
More than half our imports are clothing and textiles (worth over £350m in 1979) of which Hong Kong is the UK's single leading overseas supplier. These are inevitably the most sensitive items in Hong Kong's foreign trade relations. (Further briefing on textiles is at Brief 6) Hong Kong is aware of its heavy dependence on textiles and clothing exports and is having some success in diversifying into other products such as electronics and watch- making.
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There are dangers for the UK in being seen, in Hong Kong eyes, to be in the forefront of the protectionist lobby. We have repeatedly tried to assure the Hong Kongers that we did our best to defend their interests in the EC negotiations under the Multi-Fibre Arrangement
in 1977.