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seem to have varied substantially over the last five years,
except that the purely non-Chinese trade appears to have
decreased in relative importance, while the flow of goods
into China has diminished more than the flow of goods out
of China, which is characteristic of the general trade
position in that country.
italx
Probable Effects on Trade of a Customs Union.
6. (a) That part of Hong Kong's trade which is
concerned with the external trade of China might be
expected to be little affected, as it makes little
difference whether such trade passes the Customs barrier
between Hong Kong and China or between Hong Kong and the
third country concerned. Probably some goods which are
at present attracted to Hong Kong by its position as a
free port and ultimately exported to China, would no
longer touch Hong Kong at all, but would go straight to
their ultimate destination.
(16) Hong Kong's own imports, the next largest
single item of trade, would presumably have to pay the
Chinese rates of Customs duty. The reactions of this
are further considered below.
(c) Hong Kong's own exports of manufactured goods
to China would be substantially assisted and there might,
in fact, be a very considerable increase of manufacturing
production in the Colony.
(a) The Chinese coastal trade would be assisted
in so far as Chinese goods at present passing through Hong
Kong lose their national status and have to pay duty
again on re-entry into China. (In this connexion,
however, see paragraph 13 below).
(e)
The non-Chinese entrepôt trade would be
definitely
4