G F
326
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35.
The trade figures in the second quarter show that Hong Kong's domestic exports to China rebounded significantly while the rate of decline in re-exports slowed down. However, in view of China's recent emphasis on import substitution and considering the possible adverse effects of the recent devaluation of the Renminbi, the prospects for exports to China are not particularly rosy. On the other hand, in respect of invisible trade, as an information and services centre, Hong Kong has continued to play an important role in providing business
services to facilitiate China's modernization.
36.
A statistical appendix on Hong Kong
economic relations is attached.
S
China
Economic Analysis Division Economic Services Branch Government Secretariat 1 October 1986
CONFIDENTIAL # 3