INDUSTRY AND TRADE
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imports from the United States were textile fibres, tobacco, machin- ery, fruits and vegetables and plastic materials. Imports from the United Kingdom consisted mainly of machinery, motor vehicles and textile products.
The value of domestic exports increased by 14 per cent to reach a new record annual total of $5,027 million. Products of the textile and garment manufacturing industries accounted for 52 per cent by value. Exports of plastic goods made up a further 15 per cent.
The direction of Hong Kong's export trade is influenced by such factors as the advantages of preference in Britain and several smaller Commonwealth markets, and economic conditions and commercial policies in overseas markets. During the year 51 per cent of all domestic exports went to two markets-the United States and the United Kingdom-in roughly a ratio of two to one. The United States, remaining the largest market, took 34 per cent by value and increased her purchases by $492 million or 40 per cent. The value of goods sent to the United Kingdom was $861 million (17 per cent of all domestic exports). This represented a decline of $108 million, or 11 per cent. The Federal Republic of Germany, which became the third largest market as a result of increasing exports of woollen knitwear, purchased Hong Kong manufactures worth $371 million during the year. Other growing markets of importance included Canada, Singapore, Australia and Japan, but domestic exports now go to practically every country in the world.
The entrepôt trade has sustained its role in external trade. The value of re-exports in 1965 totalled $1,503 million, an increase of 11 per cent over the previous year. This was 23 per cent of the total combined value of exports of Hong Kong manufactures and re- exports of imported goods. Japan was the leading customer, with Singapore second. Indonesia, which showed a marked decrease in purchases during the year, took third place, followed by the United States and Formosa. The principal commodities in the re-export trade were gems and jewellery, textiles, medicinal and pharmaceu- tical products, fruits and vegetables.
TRADE PROMOTION
The increasing realization, both in commercial and industrial circles and by the government, that world markets were becoming