SECTOR WHERE HIGH INTEREST RATES HAVE HAD A MARKED DAMPENING
EFFECT ON ACTIVITY.
3. RETAINED IMPORTS OF RAW MATERIALS, SEMI-MANUFACTURES AND CAPITAL GOODS IN THE FIRST 8 MONTHS FELL BY 5 PER CENT IN REAL TERMS. APART FROM FOODSTUFFS AND FUELS WHICH INCREASED BY 5 PER CENT AND 8 PER CENT RESPECTIVELY RETAINED IMPORTS OF ALL OTHER CATEGORIES DECREASED. RETAINED IMPORTS OF CONSUMER COODS FELL BY 1 PER CENT RAW MATERIALS AND SEMI-MANUFACTURES BY 8 PER CENT AND CAPITAL GOODS
BY 19 PER CENT.
4. HONG KONG'S EXPORT PERFORMANCE HAS BEEN ADVERSELY AFFECTED BY THE SITUATION IN THE US, ITS LARGEST MARKET WHERE RECOVERY HAS BEEN DELAYED LONGER THAN EXPECTED, BUT THE ECONOMIES OF HONG KONG'S OTHER MAJOR EXPORT MARKETS REMAIN DEPRESSED AND HONG KONG IS NOW BEGINNING TO FEEL THE FULL IMPACT OF THE WORLD RECESSION. THE PRICES OF DOMESTICALLY MANUFACTURED PRODUCTS HOWEVER HAVE REMAINED RELATIVELY STABLE IN RECENT MONTHS AS THE PRESSURE FROM PROPERTY PRICES AND RENTALS, INTEREST RATES AND IMPORT PRICES CONTINUED TO EASE AND IT IS THOUGHT THAT WHEN THE RECOVERY DOES BEGIN TO AFFECT HONG KONG THE EXPORT SECTOR WILL BE WELL PLACED TO BENEFIT FROM IT. THE VALUE OF DOMESTIC EXPORTS AT ABOUT HKDLR45 BILLION IN THE FIRST 7 MONTHS OF THIS YEAR WAS 6 PER CENT HIGHER THAN IN 1981. HOWEVER, THE VALUE OF DOMESTIC EXPORTS TO BRITAIN AT HKDLR3.8 BILLION FOR THE FIRST 7 MONTHS WAS 7 PER CENT LOWER THAN IN THE CORRESPONDING PERIOD IN 1981. AMONG THE MAJOR CATEGORIES OF PRODUCTS EXPORTED TO BRITAIN ONLY TEXTILE FABRICS INCREASED IN REAL
TERMS.
E
5. HOWEVER, OPPORTUNITIES FOR BRITISH COMPANIES TO SECURE BUSINESS IN SUCH FIELDS AS QUALITY CONSUMER GOODS, CAPITAL MAHCINERY AND ENGINEERING GOODS REMAIN GOOD. IN PARTICULAR THERE COULD WELL BE EXCELLENT OPPORTUNITIES FOR COMPANIES WITH OFF-SHORE OIL EXPLORATION EQUIPMENT AND SERVICES TO OFFER.
ADAMS
NNNN