HONG KONG

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Hong Kong, a Dependent Territory of the UK, population 5,150,000,

is an important commercial and financial centre. It's economy's

average growth rate over the last several years has been some

10%, in spite of world recession. This has been combined with

considerable progress in social fields, eg housing and education.

Exports (excluding re-exports) in 1981 were over £7,000 million,

mainly to USA (36%), the UK (10% equals about £720 million),

Federal Republic of Germany (9%), Japan (4%), China (nearly 4%)

and Australia (3%). Principal imports came from Japan (23%),

China (21%), USA (10%), Taiwan (8%), Singapore (8%) and the UK

(4.5% equals about £580 milliom). The UK deficit with Hong Kong

is largely made up by the surplus in invisibles.

Over 40% of Hong Kong's exports are textiles, but its industry

is diversifying, eg into electronics, plastics, watches and

optical equipment. Hong Kong is also developing as an important

financial centre.

UK/Hong Kong relations, both commercial and political, are close,

though there are occasional differences where interests diverge.

Co-operation with China is also good. The Prime Minister will

be visiting Hong Kong in September as part of her Far East Tour.

Hong Kong are being represented at the Commonwealth Finance

Ministers' Meeting by John Bremridge, Hong Kong's Financial

Secretary.

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