}

CONFIDENTIAL # 3

11

-

total.

In view of the current excess supply of hotel

facilities, the Shenzhen authorities have recently

suspended a number of joint venture hotel projects

including the Customs Building Hotel.

Visible trade between Hong Kong and China

18.

China remained Hong Kong's largest trading partner in the third quarter of 1986. Total visible trade between Hong Kong and China, at HK$36,904 million,

increased by 25% over the third quarter of last year. For the first three quarters of 1986 as a whole, total visible trade between Hong Kong and China rose by 10% to HK$96,772

million.

19.

China remained the second largest market for

Hong Kong's domestic exports and the largest market for Hong Kong's re-exports in the third quarter of 1986.

Domestic exports to China accounted for 11% of Hong Kong's domestic exports in the third quarter, compared with 12%

in the preceding quarter and 10% in the third quarter of

1985. Re-exports to China, accounted for 32% of Hong

Kong's total re-exports, which was about the same as in the previous quarter but was substantially lower than in

the third quarter of last year, at 42%.

G.F. 326

CONFIDENTIAL #2

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