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VISIT TO HONG KONG BY LORD GLENARTHUR, 16-19 SEPTEMBER 1987

UK/HONG KONG TRADE

POINTS TO RAISE

1 Hong Kong is an important export market for the UK (seventeenth largest

world-wide and second largest in the Far East after Japan). (UK exports to HK

in 1986 were £961 millions.) We are keen to improve our market share (3.4% in

1986).

2

Despite the UK's modest market share, the level of UK exports to Hong Kong

is increasing (+11% in Jan-June 1987 against the same period in 1986). There

are particularly encouraging signs in the consumer goods sector, with notable

British retail firms setting up in Hong Kong: Mothercare, Habitat and

Marks & Spencer. This can only enhance the image of British goods.

3

Pleased that bilateral trade is increasing (UK imports from Hong Kong up

by 12% in Jan-June 1987) and that the Hong Kong economy is so buoyant (9% GDP

growth in 1986, and 8-9% forecast for 1987).

4 Encouraged by the re-emergence of large-scale projects in Hong Kong, eg

proposals for a new airport, road to Canton (China), and port development.

Trust that UK firms will be actively involved.

5

Pleased at the recent formation of a British Chamber of Commerce in HK.

This is an indication of the importance UK companies attach to the Hong Kong

market.

6 The level of British commercial interest in HK is ever increasing. A

record number of British business representatives are visiting the market, and

Hong Kong is the most popular destination under the British Overseas Trade Board's

(BOTB) Outward Mission Scheme. (25 missions in 1987, and additionally 6 joint

ventures at HK international trade fairs.)

OT2/3

August 1987

999-80

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