IN CONFIDENCE

(b) Long term

ntinue broadly as at present. Consider in due course possibility of making additional soft loan funds available for China (once progress has been made in implementing projects under existing £300 million facility).

(c) Comment on use of resources

Chine takes a larger share of BOTB resources per £ of export than virtually any other market. This is partly because it is a "difficult" market in which exporters perhaps need more advice and financial support than in other markets, and where a relatively high degree of Government involvement is inevitable. It is also a market in which a long term view needs to be taken.

SECTION III

IIIA: Economic statistics

Total UK exports to area in 1985 (exc. oil)

1344.0

Total UK imports from area in 1985 (exc. oil)

15 17.4

£m

% of total UK trade

2.2

2.0

Country

% of total UK exports to this area to country

% of total UK imports from this area from country

China

Hong Kong

Magao

30

70

0.1

20

77

2

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