44
INDUSTRY AND TRADE
The sources of imports were determined by proximity, prices, speed of delivery and by traditional trade relationships. Japan con- tinued to be the principal supplier in 1970, providing 24 per cent of all imports. Of the imports from Japan, 34 per cent was textile yarn and fabrics; the rest consisted of electrical apparatus and appliances, photographic goods, watches, non-electrical machinery, plastic mate- rials, iron and steel bars, rods, plates and sheets and miscellaneous manufactured articles. Imports from China, the second largest supplier, accounted for 16 per cent of imports from all sources and 46 per cent of all food imports. Other items imported from China included textile fabrics, clothing, crude animal and vegetable materials, paper, paper board, pottery and manufactured articles. Imports from the United States registered an increase of $314 million or 16 per cent. The principal imports from this source were machinery, "diamonds, textile yarn and fabrics, fruit, medicinal and pharmaceutical products, tobacco and tobacco manufactures, photographic and cinematographic supplies and plastic materials.
The value of domestic exports reached $12,347 million, an in- crease of 17 per cent over the previous year. Products of the textile and garment manufacturing industries accounted for 45 per cent by value, and miscellaneous manufactured articles, mainly plastic toys and dolls, wigs and artificial flowers, made up a further 25 per cent. Other light industrial products such as transistorised radios and electronic components, footwear and manufactures of metals were also important exports.
The direction of Hong Kong's export trade is nowadays in- fluenced less by such factors as tariff preference in Britain and several smaller Commonwealth markets, than by economic con- ditions and commercial policies in principal markets. During the year 54 per cent of all domestic exports by value went to two markets-the United States and Britain. The United States, re- maining the largest market, took 42 per cent by value and increased her purchases by $762 million or 17 per cent. The value of all goods sent to Britain was $1,481 million, 12 per cent of all domestic exports. The Federal Republic of Germany, Hong Kong's third largest market, purchased Hong Kong manufactures worth $985 million during the year. Other growing markets of importance