Wednesday, January 24, 1973

he said.

"In such circumstances discrimination could provoke resentment,'

Referring to the growing demand in Hong Kong for Japanese goods

such as refrigerators, television sets and motorcars, the Governor noted

that last year Japanese exports to Hong Kong amounted to some US $880 million,

However, he added that trade in the reverse direction had not been

so dramatic and amounted to US $84 million during the same period.

"Through our Trade Development Council office in Tokyo and the

rigour of our exporters we are trying to correct this," he said.

Sir Murray stressed that there were many Hong Kong products

which could sell well in Japan to the satisfaction of consumers and

without damage to Japanese manufacturers.

Much goodwill, he said, could be generated if Hong Kong products

were allowed to improve their performance in Japan.

The Governor also pointed out that Japanese business had been

taking an increasingly large stake in the economy of Hong Kong, and

Japan was now second only to the United States as a source of overseas

industrial investment.

In addition, Japanese firms had recently obtained several of

the major government contracts including the Kaitak airport runway

extension and the new desalting plant to increase water supplies.

These two contracts alone were worth US $78 million.

The Governor said he was also aware of considerable Japanese

interest in the possibility of constructing an underground railway the

cost of which was expected to be over US $1,000 million.

/Sir Murray

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