CONFIDENTIAL

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goods. Apart from political reasons, a sizeable

proportion of the trade between China and Taiwan may still be routed through Hong Kong, either as an entrepôt or as a port for transhipment, due to the excellent

infrastructural facilities found here and the very

extensive trading network possessed by Hong Kong traders

(paragraph 10).

Economic Analysis Division

Economic Services Branch Government Secretariat 7 March 1989

CONFIDENTIAL #2

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