PA
36
Draft
Brent 9.
My Canson 10/11 Mowell 10 10/4/36
X
The possible desirability of a Customs Union or other
special arrangement on matters of trade between Hong Kong
and China.
The very close trade relations between Hong
Kong and China have led several times in the past to
consideration being given to the making of a special
S'n Iflykting agreement regulating trade between them. Si J. Maffey 11: इनडाप
It has now
been suggested by Sir Frederick Leith-Ross that con-
sideration should be given to the possibility of the
entry of Hong Kong into a Customs Union with China.
the
of such a union, Clearly ts value, apart from any general requirements
's
of British policy towards China, depends on its antici-
estad
X
pated effect on Hong Kong trade.
win
General Nature of Hong Kong Trade.
2. Four broad categories may be distinguished:-
(a) imports for consumption in Hong Kong (including
raw materials for certain industries) and exports of
Hong Kong origin;
(6) Chinese external trade passing through Hong
Kong, i.e., Chinese goods re-exported to non-Chinese
countries and non-Chinese goods re-exported to China;
(c) Chinese coastal trade, i.e., goods imported from
one part of China and re-exported to another;
(a) Non-Chinese entrepôt trade, i.e., goods imported from a non-Chinese country and re-exported to another non-
Chinese country.
B
The Hong Kong trade returns do not distinguish
between imports for consumption and imports for re-export or between exports of Hong Kong, Chinese land non-Chinese
origin,
2