XN000022-1986-01-03 — Page 3

N

PHILY, JANU..... 3, 1986

HE SAID, HONG KONG'S TRADE IN 1985 WAS CHARACTERISED BY A DECLINE IN DOMESTIC EXPORTS, SLIGHT INCREASE IN IMPORTS AND SUBSTANTIAL GROWTH IN RE-EXPORTS.

+HOWEVER, HE SAID, IN TERMS OF TOTAL TRADE HONG KONG'S PERFORMANCE IN 1985 WAS COMPARABLE WITH THAT IN 1984, WHICH WAS AN EXCEPTIONALLY GOOD YEAR FOR TRADE IN HONG KONG'S RECENT HISTORY.+

MR MACLEOD EXPLAINED THAT THE DECLINE IN HONG KONG'S DOMESTIC EXPORTS IN 1985 IN COMPARISON WITH A 32 PER CENT INCREASE IN 1984 WAS LARGELY ATTRIBUTABLE TO THE RELATIVELY LOW GROWTH RATES OF MAJOR OVERSEAS ECONOMIES, PARTICULARLY THE UNITED STATES - HONG KONG'S LARGEST EXPORT MARKET.

+THE STRENGTH OF THE HONG KONG DOLLAR, AGAINST THE

CURRENCIES OF HONG KONG'S MAJOR MARKETS (EXCEPT THE UNITED STATES) AS WELL AS AGAINST THE CURRENCIES OF MANY OF HONG KONG'S COMPETITORS, ALSO CONTRIBUTED TO THE EXPORT PERFORMANCE,+ HE ADDED.

WITH THE EXCEPTION OF CHINA, HONG KONG'S DOMESTIC EXPORTS TO PRACTICALLY ALL OF ITS MAJOR MARKETS DECLINED.

ON THE OTHER HAND, DOMESTIC EXPORTS TO CHINA CONTINUED ON ITS UPWARD TREND THOUGH THERE WAS A DECELERATION IN THE YEAR-ON-YEAR GROWTH RATE IN REAL TERMS.

+THIS REFLECTS PARTLY CHINA'S TIGHTENING OF CONTROL OVER ITS FOREIGN EXCHANGE SPENDING, AND PARTLY THE DIFFICULTY IN MAINTAINING A HIGH GROWTH RATE GIVEN HONG KONG'S EXCEPTIONALLY GOOD EXPORT PERFORMANCE TO CHINA IN 1984.+

REGIONAL COUNCIL MEMBERS APPOINTED

****

THE GOVERNMENT ANNOUNCED TODAY (FRIDAY) THAT TEN MEN AND TWO WOMEN, ALL ACTIVE IN COMMUNITY SERVICE, HAVE BEEN APPOINTED TO THE 36-MEMBER REGIONAL COUNCIL WHICH WILL COME INTO BEING ON APRIL 1.

THE 12 APPOINTED MEMBERS ARE:

* MR CHEUNG YAN-LUNG, A MERCHANT AND A MEMBER OF THE

LEGISLATIVE COUNCIL AND THE NORTH DISTRICT BOARD:

* MR NATHAN MA NING-HE I PRINCIPAL OF THE YUEN LONG LUTHERAN

MIDDLE SCHOOL AND A FORMER MEMBER OF THE YUEN LONG DISTRICT BOARD;

*

MR LAU HON-KIT, A MERCHANT, CHAIRMAN OF THE SHA TIN RURAL COMMITTEE AND A MEMBER OF THE SHA TIN DISTRICT BOARD;

/* MR LANG

AN