XN000022-1986-12-17 — Page 3

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WEDNESDAY, DECEMBER 17, 1986

SIR DAVID'S CLEAR MESSAGE TO EXPORTERS

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WHILE THERE ARE GOOD REASONS TO BELIEVE THAT HONG KONG'S IMPORTANCE IN THE ARENA OF WORLD TRADERS WILL INCREASE, ONE MESSAGE IS CLEAR: WE MUST ALL WORK TOGETHER TO MAINTAIN TRADE ABROAD, OUR INDUSTRY AND THE ECONOMY AT HOME, THE ACTING GOVERNOR, SIR DAVID AKERS-JONES, SAID TODAY (WEDNESDAY).

SPEAKING AT A CHRISTMAS LUNCHEON OF THE HONG KONG EXPORTERS' ASSOCIATION, HE SAID THAT THE EXPORT ORIENTATION OF HONG KONG'S ECONOMY REQUIRED THAT WE SHOULD ALWAYS AIM AT PRODUCING MORE AND OPENING NEW MARKETS FOR OUR PRODUCTS+.

SIR DAVID SAID THAT THE RECOVERY IN EXPORTS THIS YEAR HAD BEEN MATCHED BY A REMARKABLE INCREASE OF 23 PER CENT IN REAL TERMS IN RETAINED IMPORTS OF MACHINERY AND EQUIPMENT IN THE FIRST NINE MONTHS OF THE YEAR.

THIS LEVEL OF INVESTMENT, WHICH AMOUNTED TO OVER $4 BILLION, WOULD ENHANCE HONG KONG'S MANUFACTURE AND EXPORT CAPABILITY.

+WITH THE OPENING UP OF THE CHINESE ECONOMY, THERE EXISTS A VAST POTENTIAL FOR INCREASING OUR EXPORTS AND RE-EXPORTS, HE ADDED.

SIR DAVID SAID THAT EXPORTERS WERE A VITAL LINK IN THE CHAIN WHICH MAINTAINED AND EXPANDED HONG KONG'S POSITION AS ONE OF THE WORLD'S LEADING TRADING ECONOMIES.

THE RATIO OF HONG KONG'S TOTAL TRADE TO ITS GROSS DOMESTIC PRODUCT WAS 176 PER CENT IN 1985, RANKING IT 13TH AMONG THE WORLD'S TRADING ECONOMIES.

IN THE FIRST NINE MONTHS OF THIS YEAR, HE ADDED, DOMESTIC EXPORTS HAD SHOWN A YEAR ON YEAR GROWTH IN REAL TERMS OF 13 PER CENT.

+THERE CAN BE NO DOUBT THAT THE LINKING OF THE HONG KONG DOLLAR TO THE U.S. DOLLAR HAS NOT ONLY HELPED THIS GROWTH BUT HAS ALSO HELPED DIVERSIFICATION.+

THE U.S. REMAINS HONG KONG'S LARGEST MARKET WHILE THE HIGHEST GROWTH RATES WERE JAPAN (AT 18 PER CENT) AND THE EUROPEAN MARKETS (AT 25 PER CENT).

SIR DAVID SAID THAT THE IMPROVEMENT IN FOREIGN TRADE WAS ECHOED IN THE DOMESTIC ECONOMY WITH LOW UNEMPLOYMENT AND UNDEREMPLOYMENT RATES, STRONG PRIVATE CONSUMPTION DEMAND, INCREASE IN THE RETAINED IMPORTS OF FOODSTUFFS AND RETAINED IMPORTS OF CONSUMER GOODS AS WELL AS ACTIVE RESIDENTIAL PROPERTY MARKET AND STRONG BUILDING INTENTIONS.

/+THERE HAS