INDUSTRY AND TRADE
17
As a result of unfavourable harvests in the main rice producing countries, and the imposition by Thailand of a total embargo on rice exports, the international supply situation tightened during the year causing a sharp increase in rice prices. Thailand normally supplies 60 per cent of Hong Kong's requirements. But local importers quickly turned to alternative sources and in the face of a world shortage, Hong Kong has enjoyed abundant supplies at relatively stable prices.
Despite the world-wide shortages of essential raw materials, Hong Kong imported $12,024 million or 35 per cent more of raw materials and semi-manufactured goods such as textile fibres, yarn and fabrics, base metals, plastic moulding materials, and paper and paper board. Imports of capital goods at $3,571 million, which consisted largely of machinery and transport equipment, showed an increase of 28 per cent, while consumer goods and fuels were also imported in large quantities.
Japan continued as the principal supplier in 1973, providing 20 per cent of all imports. Imports from China, the second largest supplier, accounted for 19 per cent of imports from all sources and 47 per cent of all food imports. Imports from the United States represented 13 per cent of all imports. Other important sources of im- ports were Britain, Taiwan, the Federal Republic of Germany, Singapore, Switzerland, Australia and Pakistan.
In 1973, domestic exports rose by $4,229 million to reach a value of $19,474 million, and consisted almost entirely of manufactured goods. The principal exports were textiles and clothing which accounted for more than 50 per cent of the total. But sales of miscellaneous manufactured articles, mainly plastic toys and dolls, arti- ficial flowers, jewellery and goldsmiths' and silversmiths' wares made up a further 18 per cent. Continued growth was registered also in exports of electrical machinery, apparatus and appliances (mainly transistor radios, transistors and diodes, and elec- tronic components and parts for computers), accounting for another 13 per cent of total domestic exports. Other light manufactured products such as metal manufac- tures, travel goods, footwear, and watches and clocks were also important exports.
The direction of Hong Kong's export trade is now influenced less by such factors as tariff preference in Commonwealth markets than by economic conditions and commercial policies in principal markets. In 1973, 67 per cent of all domestic exports by value went to the United States and the enlarged European Economic Community. The United States, which remained the largest single market, took 35 per cent by value, while of the next largest markets, Britain absorbed 14 per cent and the Federal Republic of Germany, 10 per cent. The value of exports to Japan more than doubled during the year and accounted for five per cent of total domestic exports. Other important markets were Australia, Canada, Singapore, the Netherlands, Taiwan and Sweden.
Considerable growth was registered in the entrepôt trade. Re-exports totalled $6,525 million in 1973, an increase of 57 per cent over the previous year. Whereas in recent years re-exports have been about 20 per cent of total exports, in 1973 they came to 25 per cent of the total. Japan remained the most important re-export market, followed by Singapore, Taiwan, Indonesia and the United States. The principal com- modities re-exported were diamonds, medicinal and pharmaceutical products, crude