RESTRICTED
067575
MOHIAN 1441
YOUR TELNO 450: VISIT OF MR GOODLAD: 28 MAY - 1 JUNE 1993
BRITISH BUSINESS PROSPECTS
SUMMARY
1. HONG KONG CONTINUES TO GROW AS A MARKET FOR UK PRODUCTS AND WAS OUR 13TH LARGEST EXPORT MARKET IN 1992 (UP FROM 18TH POSITION IN 1990). COMPETITION REMAINS FIERCE, BUT OPPORTUNITIES FOR FURTHER GROWTH IN EXPORTS ARE GOOD, PARTICULARLY IN AREAS RELATING TO INFRASTRUCTURE PROJECTS AND CONSUMER GOODS. MORE UK COMPANIES ARE SHOWING AN INTEREST IN THE MARKET.
DETAIL
2. UK EXPORTS TO HONG KONG IN 1992 WERE, AT POUNDS STERLING 1.6 BILLION, UP 16.3 PERCENT OVER 1991, A CONSIDERABLY HIGHER INCREASE YEAR ON YEAR THAN THE GLOBAL AVERAGE OF 3.3 PERCENT. OUR STRENGTHS LIE IN POWER GENERATION MACHINERY, ELECTRICAL GOODS, TRANSPORTATION AND TELECOMMUNICATIONS EQUIPMENT: THESE SECTORS ALONE ACCOUNT FOR OVER ONE THIRD OF OUR EXPORTS TO HONG KONG. THE MARKET FOR QUALITY CONSUMER GOODS CONTINUES TO GROW AND OUR SALES IN THIS SECTOR HAVE INCREASED IN PROPORTION. STERLING'S DEVALUATION AGAINST THE US AND HK DOLLAR IS GIVING OUR SUPPLIERS A COMPETITIVE EDGE AND IS UNDOUBTEDLY AN IMPORTANT CONTRIBUTORY FACTOR.
3. THE CATALOGUE OF MAJOR PROJECTS IN HONG KONG HAS BEEN WELL PUBLICISED AND IS WELL KNOWN IN THE UK. A SUMMARY OF THE LATEST POSITION, AND A COMMENT ABOUT OUR PROSPECTS AREA BY AREA MIGHT NEVERTHELESS BE HELPFUL.
4. THE NEW AIRPORT CORE PROGRAMME (ACP) CONTINUES TO BE THE MAJOR SINGLE ACTIVITY IN THE PROJECT FIELD. TOTAL VALUE OF CONTRACTS AWARDED BY END OF APRIL 1993 WAS HKD 22 BILLION. THIS REPRESENTS
1
PAGE RESTRICTED