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agricultural products.
Use of the scheme by Hong Kong
(but not China) is subject to special restrictions
reflecting the territory's relatively high level of
development and competitiveness. Other developed countries
operate similar schemes, although on terms less generous
than the EC's.
Hong Kong Trade with United Kingdom and China.
13. In 1981, Hong Kong became the UK's biggest export
market in Asia with UK exports reaching approximately
£600 million (4.5% of Hong Kong imports and 1% of United
Kingdom exports). But the visible trade balance remains
in Hong Kong's favour at about £200 million in 1981.
There were £4.8 million worth of United Kingdom exports to
China via Hong Kong in 1980.
14. There is growing trade between Hong Kong and
China. In 1981 21.3% of Hong Kong's imports came from
China (its second largest supplier). 3.6% of Hong Kong's
exports and 19.3% of Hong Kong's re-exports went to China.
Possible Changes
Recognition of Chinese Sovereignty with Continuing British
Administration
15. Full British control involving responsibility for
the conduct of Hong Kong's external relations (see Annex H)
would enable Hong Kong to continue to benefit from its
participation in international trading arrangements (eg
GATT).
This is a vital point for continued economic
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/stability