BUSAAF ( 3 )

The principal suppliers were:

China

Japan

Taiwan

United States

31.2%

18.6%

8.9%

8.3%

7. The strength of demand in the economy in 1988 was partly met by

increased imports and there was a deficit in visible trade of

HK$5.7 billion, or 1.1% of total imports. However, trade in

invisibles makes an important contribution to Hong Kong's balance of

payments and the territory's surplus on invisibles was estimated at

roughly HK$21 million at current prices in 1987.

8. For many years Hong Kong's exports to the UK have exceeded

British exports to Hong Kong. However, Hong Kong is now, after Japan, Britain's largest market in the Far East and in 1987 the UK's 18th largest export market worldwide. British exports to Hong Kong

in 1988 totalled £1,031 million (1987: £1,013 million), making it

the 19th most important market. British imports from Hong Kong in

1988 totalled £1,788 million (1987: £1,226 million). A substantial

proportion of British imports from Hong Kong in recent years has

consisted of textiles and clothing.

9. Government revenue in 1989/90 is estimated at HK$71.9 billion

(approximately £5.13 billion), the majority of which comes from

direct and indirect taxes, land transactions and payments for

Government services. Government expenditure will be HK$69 billion.

(approximatley £4.9 billion). After three years of budget deficits, Hong Kong returned to balanced budgets in 1985-86. The 1989-90 budget anticipates a surplus of HK$11.5 billion (approximately

£820 million) on general revenue account. The main areas of

Government spending include social and community services (health, education, transport), Security (defence, police, immigration) and

economic and general services (ports, airports and administration).

10. The financial sector in Hong Kong has grown rapidly in both domestic and international importance in recent years. Hong Kong now ranks as one of the world's leading international financial

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