2
A PERSONAL VIEW
been organised from Sweden, the Netherlands, Germany, Britain, France and Spain- making it a two-way drive.
A representative of the Egyptian Government, incidentally, visited Hong Kong during the year to consult authorities on the projected creation of a Hong Kong- style, low-tax, duty-free industrial port-city on the Suez Canal.
The new Chairman of the Trade Development Council, T. K. Ann, pointed out that, at the end of 1974, Hong Kong was trading with 158 states and territories. But he stressed the need for Hong Kong to diversify industry. 'Our lop-sided reliance on textiles and garment exports to a handful of important markets is precisely the reason why we need sophisticated and diversified development of new products and new markets', he said. 'After we have traded up in textile and garment fields, we must look farther afield'.
Overseas Investment
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United States firms have the largest single bloc of foreign investment in Hong Kong, which, all told, is believed to account for 12 per cent of industrial employment and 14 per cent of Hong Kong's exports. But in addition to industrial development, the United States Consulate-General has pointed out: 'There has been a large influx of other United States firms conducting other forms of economic activity. These include services, trading and wholesaling-although the largest single group of American firms are regional headquarters, which were attracted to Hong Kong by a favourable business environment and excellent communications with all countries in the area'.
The American Fortnight, when the United States made a peaceful 'occupation' of Hong Kong, with 87 trade exhibitors and more than 100 general participants, as well as art shows, marching, long-legged 'majorettes', singers and even an American football match, set the seal on United States trade for the coming year. Sales estimates of American goods totalled HK$100 million on the spot, with pledged additional three-month sales worth $250 million.
The United States buys 30 per cent of Hong Kong's total exports and Hong Kong ranks among the top 25 countries in the world as a market for American goods. In 1973, Hong Kong's total trade with the United States had grown to over two billion US dollars; compared with the hard days of the early fifties, humble precursor for the mid-seventies, an annual average increase of 19 per cent, or roughly double that of world trade in general during the same period.
The Financial Secretary, Philip Haddon-Cave, resisted pressure for an increase in the existing standard salary tax of only 15 per cent when he presented his budget, which was generally approved and the results of which have so far amply justified his cautious optimism. He has boldly predicted that Hong Kong productivity will grow by at least 6.7 per cent a year over the next decade, bringing an improvement of more than 50 per cent in living standards. This compares with the average of 7.7 per cent for the eight years to 1973.