the policy of the then Colonial Office in London, but not so between the Chinese of Hong Kong and the Chinese Government.
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In 1981, the value of China products shipped to Hong Kong reached HK$29,510 million and the total value of Hong Kong exports to 'China was 10,968 million. During the past 5 years, the export of China products to Hong Kong increased by an average of 31.52% and the average increase of import from Hong Kong was 186.96%. One of the Hong Kong export items deserves special mention, and that is the daily supply of electricity from Kowloon to the Guangdong power distribution net work over the border. In 1981, the China Light & Power Company, a Hong Kong incorporated company, delivered 254 million kwh and this will be progressively increased to 500 million kwh per year.
While this supplements the electricity requirements of Guangdong, it also assists China Light & Power in the better utilization of generation plant during periods of off-peak demand. The system of interconnections is arranged in such a way that, eventaully, electricity can also flow to Hong Kong from a nuclear power station to be erected y in Guangdong. This proposed nuclear power station will have two
900 mega watt pressurised water reactors. This unique co-operation em- phasises the foresight and long term confidence of Hong Kong belongers.
The impact on Hong Kong by the modest beginning of the modernization programme has assisted Hong Kong to re-emerge as an entrepot for the
China trade in a big way. China is, of course, both the biggest source and the biggest market for Hong Kong's re-exports. To meet the ever increasing volume of trade, the means of transport between Hong Kong and Guangdong must be improved. In order to reduce delays in the transit of goods and to reduce the cost of transportation and handling, the Guangzhou-Shenzhen railway must.be double tracked to link up with Kowloon as an order of first priority. Hong Kong is the only deep sea port with all modern facilities on the South China coast and an increasing number of containers will flow in both directions between Hong Kong and Guangzhou. This traffic must, in the near future, be carried by rail. Just imagine the very high cost and congestion with the resulting con- fusion on the roads if motor trucks only are used for the transport of ' containers. The double tracking of the railway could be carried out with comparative ease and completed quickly at reasonable cost to the benefit of Hong Kong, China and the world.
China became Hong Kong's largest supplier of goods in January 1982, overtaking Japan for the first time in recent memory.
I believe the contributing factors to the increased demand for Chinese products are the result of improvement both in quality and diversity of