!
Brief No 1
SECRETARY OF STATE FOR TRADE: VISIT TO HONG KONG
26-30 JANUARY 1980
STEERING BRIEF
Purpose of the Visit
1. The main purpose of the visit will be to foster good trade relations between the UK and Hong Kong. The Hong Kong Government has been vigorous in its attempts to secure a share in the Secretary of State's Far East tour. It will also provide an opportunity to balance the rather critical view of the British economy and industry commonly held in Hong Kong. The Secretary of State will make a major policy statement on British Trade Policy whilst in Hong Kong.
Constitutional Status of Hong Kong
2. Hong Kong is a Crown Colony administered by
a Governor who is advised by an Executive Council. The Secretary of State for Foreign and Common- wealth Affairs is directly responsible to Parliament for its government.
The Hong Kong Economy
3. Hong Kong has almost no natural resources and depends upon manufactured exports for its survival. The world recession of 1974 was deeply felt but recovery was rapid, based on swift export growth. GDP has grown on average by 10% per annum and there have been signs recently of over- heating of the economy.
Importance of UK-Hong Kong Trade
----
4. Despite its small population and size, Hong Kong is our second largest market in the Far East, after Japan, and provides British exports with a shop-window for the Pacific Basin region. However, our export performance has declined for over a decade though it is slowly improving now, partly as a result of a more favourable climate engendered by the Hong Kong Government. British companies have done particularly well in a number of capital projects and are tendering for others. 1979 trade figures show a substantial jump as a result of payments for projects already won, and which will continue to affect future years figures although we hope that the proportion they represent of total trade with Hong Kong will decrease, as our general trade performance improves.
Background Paper No 1
Brief No 3