CONFIDENTIAL
機密
N.B
12/3
Hong Kong as a Market for the U.K.
6.
Mr. Cheong said that there were plenty of opportunities for the U.K. to expand its sales in Hong Kong. Hong Kong had a big demand in textile fabrics which amounted to half a billion pound sterling in 1978. Japan was the biggest supplier accounting for 34% while U.K. was the sixth largest supplier accounting for only 2.6%. This was an area Hong Kong thought the U.K. should devote greater efforts in capturing a larger share of the Hong Kong market. Another area which the U.K. could try to obtain a larger share was machinery. In 1979, Hong Kong imported over half a billion pound sterling worth of machinery. The U.K. was the third largest supplier accounting for 12%, while Japan, the largest supplier, account for 38%. Hong Kong needed to import more advanced machinery. The U.K., with an established industry, had good potential to increase its sale of this item to Long Kong. Mr. Chan said that if the U.K. weavers could produce middle price fabrics as the Japanese did, they would be as competitive as the Japanese. At present, the U.K. offered only high price fabrics and these were too expensive for Hong Kong manufacturers. Miss Wong said that Hong Kong manufacturers were faced with market pressure to improve their machinery. suggested that Mr. Nott should carry home the message that U.K. products were competitive provided that the U.K. suppliers would make an effort. Mr. Nott said on returning to the U.K. he would emphasize the potential and importance of Hong Kong as a market to the U.K.
Industrial Investment
She
7.
Mr. Dunning commented that U.K. had already had a large share of the Hong Kong market in terms of invisible exports, such as the British Airways, cable and wireless, banking, shipping and insurance. If these invisible exports were aggregated with visible exports, there was substantial surplus in U.K.'s favour. The Chairman said this situation ought to be examined in terms of Hong Kong attracting more industrial investment from the United Kingdom. Mr. Nott said the U.K. Government would be delighted to see more U.K. investment in Hong Kong. The abolition of the U.K. Exchange Control measures should pave the way for increased industrial investment
overseas.
8.
Messrs Wong and Ting suggested that Hong Kong should organise more missions to U.K., and vice versa. The possibility of establishing connections with China through Hong Kong should be explored. Mr. Nott noted that h.. had recently led a mission to the U.K. and this was great success. Dr. Fung said at the present stage what Hong Kong was looking for was technology, not capital. He saw merit in U.K. manufacturers setting up offshore facilities in Hong Kong as a means of reducing production costs and improve exports. In his own case, he had recently entered into a joint venture with a U.K. company and this proved a great success,
19.