XN000022-1980-11-03 — Page 4

+

MONDAY, NOVEMBER 3, 1980

3

HONG KONG TRADE AN OPPORTUNITY NOT A THREAT

****

MR CECIL PARKINSON, MINISTER FOR TRADE, TODAY CALLED FOR A CHANGE IN THE BRITISH ATTITUDE THAT REGARDS HONG KONG SIMPLY AS AN EXPORTER TO THE UK.

SPEAKING AT THE VISITING HONG KONG GENERAL CHAMBER OF COMMERCE DINNER IN LONDON HE SAID:

+ BRITISH COMPANIES MUST STOP THINKING OF HONG KONG ONLY AS A THREAT TO THEIR DOMESTIC MARKETS. IN FACT IT IS A HUGE MARKET FOR BRITISH GOODS AND SERVICES. THIS YEAR EXPORTS TO HONG KONG WILL PROBABLY EXCEED 500 MILLION POUNDS STERLING. HONG KONG IS AN OPPORTUNITY, NOT A THREAT.

+FOLLOWING MY RECENT VISIT TO HONG KONG WHEN I LED A MISSION OF SENIOR TEXTILE INDUSTRY REPRESENTATIVES, I AM CONVINCED THAT BRITISH INDUSTRY IN GENERAL MUST GIVE THIS MARKET MUCH MORE ATTENTION.

MY CONVICTION IS BASED ON THREE FACTORS:

* HONG KONG IS A VAST MARKET IN ITS OWN RIGHT. GOODS WORTH

85.8 BILLION HK DOLLARS WERE IMPORTED LAST YEAR ALONE. BRITAIN IS ALREADY ESTABLISHED IN THE CAPITAL GOODS MARKET. AND SOLD 12 BILLION HK DOLLARS WORTH OF INDUSTRIAL, ELECTRONIC, TRANSPORT, AND OFFICE MACHINERY LAST YEAR REPRESENTING 14.2 PER CENT OF HONG KONG'S IMPORTS AND COINCIDENTALLY 14.2 PER CENT OF THE CAPITAL GOODS MARKET.

* HONG KONG IS AN INVESTMENT AND PURCHASING CENTRE OF MAJOR

IMPORTANCE IN SOUTHEAST ASIA WITH BUYING DECISIONS BEING MADE FOR ACTIVITIES AS FAR AWAY AS SRI LANKA AND MAURITIUS WITH A PRESENCE IN HONG KONG, BRITISH COMPANIES ARE GOING TO HAVE THEIR FINGERS ON THE PULSE OF MOST OF THE SUB-CONTINENT. THE NEED FOR US TO INCREASE OUR 6.3 PER CENT SHARE OF OVERSEAS INVESTMENT IN HONG KONG IS OBVIOUS.

*

HONG KONG IS THE GATEWAY TO CHINA, A COUNTRY WITH ENORMOUS DEVELOPMENT POTENTIAL AND WELL-ESTABLISHED LINKS WITH THE COLONY, HONG KONG'S EXPORTS TO CHINA ROSE BY A STAGGERING 514 PER CENT LAST YEAR. THE EXPANSION OF CHINA'S GUANGDONG FROVINCE WHICH BORDERS HONG KONG UNDERLINES THE COLONY'S DEVELOPING ECONOMIC COOPERATION AND ITS REPUTATION AS A SHOP WINDOW.

BRITAIN IS UNIQUELY POISED TO TAKE ADVANTAGE OF THESE OPPORTUNITIES. FIRST BRITAIN IS HIGHLY REGARDED NOT JUST BECAUSE OF LONG STANDING COMMERCIAL LINKS BUT BECAUSE THE DISCERNING BUSINESSMEN OF HONG KONG RECOGNISE THE PERFORMANCE OF BRITISH COMPANIES IN FOR EXAMPLE THE MASS TRANSIT RAILWAY AND POWER STATION DEVELOPMENT.

BRITISH QUYSULTANTS