Apart from 1979, when the Financial Secretary took steps to

reduce domestic consumption by deferring some major highway and other

public sector projects, the building and construction industry has

continued to operate at a high level. There remain many major

Government capital expenditure projects in the offing (the Island Line

replacement airport, bridges to Lantau and at Lyemun, sewage and water

schemes, public housing). This augurs well for a continued steady

growth in Hong Kong's imports of capital goods which currently account

for about 14.5% of all imports.

In his mid-year review of the economy, the Financial Secretary

revised the budget forecast for real growth in imports from 13 to 16%.

5.(ii)The trend of the UK's market share over the last five years

and prospects in the next three.

HK Imports from the UK

% Share of

Value (£m) Total Imports Retained Impor

Year

Value (HK$m)

1976

3,401

204

4.2

4.7

1977

3,152

271

4.5

5.0

1978

4,018

362

4.7

5.4

1979

6,348

442

5.1

6.0

1980

7,609

559

4.9

6.1

With the exception of 1967, 1972 and 1975, the trend of Hong

Kong imports from Britain was one of steady growth in value terms but

a declining share of the total import market from 13% in 1961 to a

nadir of 4.2% in 1976. The decline was finally arrested in 1977 and

the position improved in '78 and '79. Although the UK share of

total imports slipped once again below the 5% mark in 1980, the

massive increase in Hong Kong's re-export trade since the resurgence

of/....

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