49

63.

(e) Summary

Apart from the volume of entrepot trade

going through Hong Kong, the value of Hong Kong in

serving as an access point for China cannot be

properly quantified though this is believed to be of

great significance. Hong Kong in many aspects functions as a "window" of China to the rest of the

world; on one hand, China learns from Hong Kong in the fields of industrial and commercial undertakings; on the other hand, China makes use of the established commercial and communication contacts between Hong

Kong and the rest of the world. In both cases, without Hong Kong, China would have to take a more indirect route at a greater cost for achieving the same objectives.

G.F. 326

CONFIDENTIAL # 3

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