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Consequently, moving into container and expanding freight traffic was the only solution for future expansion, Mr. Howes said.

According to statistics released in November, 1980 by the Census and Statistics Department, cargo transported to China from Hong Kong by train came to 4 700 tons in the first eight months of 1980. It was expected that the figure for the whole year would reach 7 000 tons, a 70 per cent increase compared with 1979.

However, the volume of cargo transported from China to Hong Kong seemed to have reached saturation point. In the first eight months last year, the figure was 1.31 million tons, representing an increase of only five per cent.

B. By trucks through Man Kam To

Ta Kung Pao reported on January 22, 1981 that according to statistics provided by Trade Industry and Customs Department, the volume of goods transported through Man Kam To Road increased drastically from 136 700 tons in 1979 to 309 100 tons last year, up 120 per cent; while the number of vehicles passing there increased from 28 000 in 1979 to 91 400 last year, up 220 per cent.

Last year, the daily average in the volume of goods sent through the Man Kam To Road Customs check point was 847 tons and in the number of vehicles crossing the check point was 250. Goods imported to Hong Kong were mainly textile products, plastic materials, rattan furniture, livestock, vegetables, fresh milk, toys and such goods as cigarettes and wines, whilst goods sent to China were chiefly textiles (for processing), new and used vehicles, plastic goods and cigarettes and wines (chiefly European wine), etc.

Statistics also revealed that two years ago, the amount of goods sent to Hong Kong was more than that sent to China through the Man Kam To customs check point. But last year, there was a drastic increase in the volume of goods sent from Hong Kong to China, which was more than double the amount of goods imported to Hong Kong.

Meanwhile, the Centre Daily News reported on November 10, 1980 that cargo transports through Man Kam To have been increasing enormously. There was only 71 000 tons in 1978 but the figure for 1979 jumped to 136 700 tons.

4. CARGO SERVICES

A.

Hong Kong Cargo System Company Limited &

Wen Wei Enterprises Limited

In order to cope with the drastic increase in the volume of China's foreign trade, the Hong Kong Cargo System Company Limited (

***AJ)

and Wen Wei Enterprises Limited (XAF) signed an agreement in Beijing on March 21, 1980 with the China National Foreign Trade Transportation Corporation (A) under which the two Hong Kong companies would act as sole agents for the transportation of goods between China and Hong Kong commencing on April 1, 1980.

The agreement covers goods exported from China under FOB terms and goods imported to China from Hong Kong under CIF or C & F terms or vice versa by air, rail and sea.

The Cargo System Company Limited is a member of the British Cargo System Group, which has been in the transportation business for over 25 years, while Wen Wei Enterprises Limited is a subsidiary of Wen Wei Po of Hong Kong.

B. Guangzhou Railway Bureau

In August, 1980, the Guangzhou Railway Bureau reached an agreement with Kowloon-Canton Railway to allow local businessmen to fully utilise empty carriages on trains going back to China from Hong Kong.

A spokesman for the bureau added that the service offered was direct, fast, safe and cheap.

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