XN000022-1980-06-18 — Page 24

13"

"I endorse the Secretary of State's observations on the increasing

role that Hong Kong and Britain, working together, might play in China trade

to their mutual benefit and also to the benefit of China itself. Hong Kong

has indeed the asset of having the great respect of China and its economic ability

and, with Hong Kong's easy and regular access to Guangdong Province, it is

ideally suited for the development of light industries and the building of

industrial infrastructures and estates.

"There are undoubtedly real opportunities for collaboration between

British business interests and Hong Kong and I am pleased to note that Her

Majesty's Government are very anxious that such arrangements should form an

important part of Britain's growing relationship with China. Activities

such as these were what the Trade Development Council has established many

years ago to promote. It was for good reasons that the title 'trade' as

opposed to export' development was chosen, as we were vell aware that two-

way trade was of vital necessity for Hong Kong, and try Council certainly hopes

that British enterprise will recognise the value of Hong Kong now, not only as

a parket in itself, but as a gateway to China and indeed the whole of the Far

East.

"Indeed, my Council has always followed the policy of including

importers in the trade missions we send to Britain and this has helped

lead to a significant improvement in Britain's visible trade with Hong Kong.

Following an increase of 36 per cent in 1978, Hong Kong's imports from

Britain increased by a further 46 per cent in 1979 to represent a value of

€442 million and the first four months of 1980 continued to show very

encouraging growth rates.

But Britain's