XN000022-1986-09-09 — Page 2

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TUESDAY, SEPTEMBER 9, 1986

BRITAIN LOSING OUT IN HK MANUFACTURING

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THE BRITISH HAVE SADLY IGNORED OPPORTUNITIES IN MANUFACTURING IN HONG KONG WHICH OTHERS, SUCH AS THE AMERICANS AND JAPANESE, HAVE SUCCESSFULLY EXPLOITED.

THIS WAS SAID TODAY (TUESDAY) IN A SEMINAR HELD IN LONDON FOR POTENTIAL INVESTORS, BY THE DIRECTOR OF INDUSTRY, MR K.Y. YEUNG.

MORE THAN 50 BUSINESS AND INDUSTRY LEADERS ATTENDED THE SEMINAR ORGANISED JOINTLY BY THE LONDON OFFICE OF THE GOVERNMENT AND THE HONGKONG AND SHANGHAI BANK.

MR YEUNG SAID THAT BRITISH EXPORTS TO HONG KONG HAD BEEN DOING VERY WELL AND OVER THE PAST FIVE YEARS UK EXPORTS OF MANUFACTURES TO THE TERRITORY HAVE GROWN BY 106 PER CENT.

IN 1984 HONG KONG BECAME THE LARGEST MARKET FOR BRITAIN'S EXPORTS OF MANUFACTURES TO ASIA, BUT THE BRITISH PRESENCE HAS BEEN LARGELY DOMINATED BY TRADE CONSIDERATIONS, HE SAID.

+ IF BRITISH EXPORTS TO HONG KONG HAVE BEEN DOING WELL, IT IS A MATTER FOR REGRET THAT THE SAME CANNOT BE SAID OF BRITISH INVESTMENT IN HONG KONG'S MANUFACTURING INDUSTRIES. AS FAR AS MY DEPARTMENT CAN ASCERTAIN ON THE BASIS OF A SURVEY OF OVERSEAS INVESTMENT IN 1984, THERE WERE IN THAT YEAR ONLY 53 FACTORIES WITH AN AGGREGATE INVESTMENT VALUE OF A LITTLE OVER 70 MILLION POUND STERLING, WHICH GAVE BRITAIN A SEVEN PER CENT SHARE OF THE VALUE OF TOTAL OVERSEAS INVESTMENT, A RATHER DISTANT THIRD PLACE AFTER JAPAN, 21 PER CENT, AND THE UNITED STATES, 53 PER CENT. BRITAIN'S MANUFACTURING INDUSTRIES MAY HAVE MISSED MANY OPPORTUNITIES IN HONG KONG.+

MR YEUNG DETAILED THE ATTRACTIONS THAT THE TERRITORY OFFERED AS A PLACE FOR INVESTMENT IN MANUFACTURING. WE ARE NOT SEEKING TO DIVEST BRITAIN OF CAPITAL OR JOBS, FOR CAPITAL IS READILY AVAILABLE IN HONG KONG AND UNEMPLOYMENT HAS NEVER BEEN A SERIOUS PROBLEM. WE ARE ESSENTIALLY INTERESTED IN BENEFITTING FROM YOUR MORE MATURE INDUSTRIAL EXPERIENCE AND YOUR TECHNOLOGY, IN EXCHANGE FOR PROFITABLE OPPORTUNITIES IN THE ASIA PACIFIC REGION, HE SAID.

ALSO SPEAKING AT THE SEMINAR WAS MR KENNETH FANG. OF FANG BROTHERS KNITTING CO. LTD. HE REVIEWED HONG KONG AS A BUSINESS BASE IN ASIA AND A GATEWAY TO CHINA.

MUCH CHANGE WAS TAKING PLACE IN CHINA, HE SAID, BUT IT IS LIKELY TO TAKE DECADES RATHER THAN YEARS FOR CHINA TO REACH A STAGE OF DEVELOPMENT WHERE IT MIGHT DISPENSE WITH HONG KONG AS ITS DOOR ON THE OUTSIDE WORLD.

/+GIVEN HONG