XN000022-1988-10-14 — Page 12

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FRIDAY, OCTOBER 14, 1988

THIS PROPORTION DROPPED TO SLIGHTLY OVER 37 PER CENT LAST YEAR, WITH THE DOWNWARD TREND CONTINUING DURING THE FIRST SEVEN MONTHS OF THIS YEAR.

MR SZE DESCRIBED AS "UNHEALTHY" AN OVER-DEPENDENCE ON ANY MARKET, ESPECIALLY "WHEN TEXTILES AND CLOTHING ALONE MAKE UP OVER 40 PER CENT OF THE TOTAL VALUE OF HONG KONG'S EXPORTS TO THE UNITED STATES"

HE NOTED AN ENCOURAGING TREND IN HONG KONG'S EXPORTS ΤΟ JAPAN WHICH HAD INCREASED BY 35 PER CENT IN 1986 AND 53 PER CENT IN 1987.

"INDEED WE CONTINUE TO DO REASONABLY WELL IN JAPAN THIS YEAR DESPITE AN ACUTE LABOUR SHORTAGE AND A DECLINE IN OUR EXPORTS OF FUR GARMENTS TO JAPAN, THE LARGEST SINGLE ITEM OF OUR EXPORTS.

"I

MR SZE SAID THAT ALTHOUGH THE TRADE GAP BETWEEN HONG KONG AND JAPAN REMAINED ENORMOUS AND STILL GROWING, WITH THE JAPANESE MARKET MORE OPEN THAN BEFORE THERE WERE PLENTY OPPORTUNITIES FOR EXPORTERS.

TURNING TO HONG KONG'S TRADE WITH CHINA, MR SZE SAID THAT CHINA HAD BECOME HONG KONG'S NUMBER ONE TRADING PARTNER AND SUPPLIER, ACCOUNTING FOR 27 PER CENT OF THE TERRITORY'S TOTAL TRADE.

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"WE HAVE JUST OVERTAKEN JAPAN AS CHINA'S LARGEST TRADING PARTNER, ACCOUNTING FOR OVER 20 PER CENT OF ITS TRADE. TWO-WAY TRADE BETWEEN HONG KONG AND CHINA HAS GROWN 19 TIMES SINCE 1978, HE ADDED.

MR SZE NOTED THAT THERE HAD BEEN A SURGE IN HONG KONG'S RE-EXPORTS, NOTABLY FROM CHINA, IN RECENT YEARS SO MUCH SO THAT THE VALUE OF RE-EXPORTS HAD NOW OVERTAKEN THAT OF DOMESTIC EXPORTS.

MR SZE ATTRIBUTED THE RE-EMERGENCE OF HONG KONG AS AN ENTREPOT FOR CHINA TO FOUR MAIN REASONS, NAMELY:

THE OPENING UP OF CHINA HAD REVIVED HONG KONG'S ROLE AS NATURAL GATEWAY TO CHINA;

THE

THE EXCELLENT INFRASTRUCTURES AND PORT FACILITIES IN HONG KONG;

THE TENDENCY FOR MOST OUTWARD PROCESSING PRODUCTS AND PRODUCTS FROM JOINT VENTURES WITH HONG KONG INVESTMENT TO BE SHIPPED THROUGH HONG KONG FOR QUALITY CHECKS AND PACKAGING BEFORE EXPORT; AND

THE INCREASING AND SUBSTANTIAL VOLUME OF TRADE BETWEEN CHINA, SOUTH KOREA AND TAIWAN THROUGH HONG KONG.

MR SZE SAID THAT AGAINST THIS BACKGROUND AND OTHER HEALTHY TRENDS, THE FUTURE FOR HONG KONG'S TRADE WAS BRIGHT.

/HE REITERATED