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investment in Hong Kong compared with 75 per cent held by the USA and Japan
combined. In addition, however, UK banks and other service industries are
strongly represented.
The textile and clothing industries are Hong Kong's largest, employment about 40% of the total industrial workforce and producing some 42% by value of total domestic exports. Almost half our imports from Hong Kong are from this sector and it is inevitable that it is one of the most sensitive items in Hong Kong's foreign trade relations. Hong Kong recognises its dependence on textiles and clothing and is diversifying into other products such as watches and toys.
InSeptember 1980, the then Minister for Trade, Mr Cecil Parkinson led a Textile Mission '80 to Hong Kong to investigate the market there for British textiles. In 1980 Hong Kong imports of UK textiles and clothing amounted to £19.7 million but in 1981 imports of these products from the UK fell by 14% to £16.9 million.
Export Credit
The full range of ECGD facilities are available for Hong Kong which is now ECGD's largest market in terms of exposure. Hong Kong is classified "Intermediate" for Consensus purposes. Under the latest arrangements the officially supported interest rate would therefore be 10.85% for credits up to 5 years and 11.35% for credits in excess of 5 years.
ECGD supported loans for large projects have played an important role in the recent development of Hong Kong. The support provided for the construction of the Mass Transit Railway and the two Castle Peak power station projects entail a number of innovative features such as partial HKS financing and the facility to switch the currency of the loan and demonstrate a flexibility of approach appreciated by borrowers in Hong Kong. The largest of these, that for the Castle Peak B power station, is also significant as the repayment period for the loan extends 5 years beyond the expiry of the New Territories lease in 1997. The decision to agree support beyond that date was viewed as a significant indication of the UK's continuing commitment to the territory.
UK Export Promotion in Hong Kong
Officially supported missions (roughly one a month) and British businessmen have visited the territory in substantial numbers in recent years in 1981 Hong Kong was the fourth most frequently visited territory under the BOTB's Outward Mission Scheme. Exhibitions are severely hampered by the lack of adequate suitable space in a central location in which to present exhibitions.