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IV
10.
Nevertheless the great practical value of
Hong Kong at present outweighs these nationalist and
ideological considerations.
Of first importance is the
Colony's value as a source of foreign exchange.
Imports
from China were about £600m in 1974, a rise of 6.3%
over 1973. As a proportion of China's total foreign
exchange earnings, however, earnings from Hong Kong on
present trends may decline from 40% annually in the
decade prior to 1973 if Chinese oil exports gather momentum.
We know that earnings from Hong Kong are specifically
mentioned as a factor in the Chinese five year plan now
beginning and we can assume that they will continue to be
significant up to and beyond 1990. Hong Kong is
also of value to China as an entrepot centre for Chinese
foreign trade; as a centre of financial and technical
expertise servicing Chinese trade in invisibles; as an
international point of exit and entry; as an observation
post on the outside world, particularly in the Far East
and particularly Taiwan; and as a centre for subversive
activities including propaganda.
External Relations
11.
The principal factor in Hong Kong's external
affairs is, of course, the Chinese attitude which was
publicly defined by the Chinese Permanent Representative
to the United Nations in a letter to the Chairman of the
Committee of 24 dated 8 March 1972:
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