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BRITISH BUSINESS PROSPECTS
GENERAL
1.
BOOM CONDITIONS CONTINUE WITH RISING INVESTMENT INTO AND FRO CHINA. CONFIDENCE THAT AIRPORT PROBLEMS WILL BE RESOLVED AND GROWTH CONTINUE FOR FORESEEABLE FUTURE. BRITISH COMPANIES DOING WEL AT ALL LEVELS, WITH EXPORTS UP 20-25 ON 1991 AND LIKELY TO CONTINUE TO RISE.
2.
INFLATION AND OVERHEATING OF THE LOCAL ECONOMY THE MAIN FEAR BUT THESE ARE THE SAME FACTORS THAT ARE ENCOURAGING THE FLOW OF MONE ACROSS THE BORDER. THE MAIN PROBLEMS WE FACE ARE IGNORANCE WITHIN THE U.K. AND FAILURE TO USE THE HONG KONG BASE FOR PENETRATING THE CHINESE MARKET. IMPORTANT THAT LIMITATIONS OF CREDIT DO NOT TIE THE HANDS OF THOSE BIDDING FOR THE MAJOR CONTRACTS.
DETAIL
3.
HONG KONG IS NOW THE U.K'S 15TH LARGEST MARKET. U.K. EXPORTS TO HONG KONG 1991 WERE POUNDS STERLING 1.38 BILLION, UP 12 PER CENT FROM THE PREVIOUS YEAR AND SUBSTANTIALLY MORE THAN OUR EXPORTS TO INDIA OR AUSTRALIA, AND FOUR TIMES AS MUCH AS TO CHINA. THE TREND CONTINUES THIS YEAR. WE SELL WELL ACROSS THE BOARD, CAPITAL AS WELL AS CONSUMER GOODS. WHILE OUR PERFORMANCE IS SATISFACTORY ON A WORLD SCALE, THE U.K. HAS A BETTER MARKET PENETRATION IN OTHER ASIAN MARKETS (TAKEN OVERALL THE U.K'S MARKET SHARE OF HONG KONG IMPORTS REMAINS A DISAPPOINTING 2.2 PER CENT).
SOUTH CHINA
4.
A MAJOR AND GROWING FACTOR TO HONG KONG'S SUCCESS IS THE RAPID GROWTH OF THE INDUSTRIAL AREA OF GUANGDONG PROVINCE. NO OTHER ADVANCED AND WEALTHY INDUSTRIAL SOCIETY IN THE
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