XN000022-1989-03-13 — Page 8

MONDAY, MARCH 13, 1989

"HONG KONG IS JAPAN'S FIFTH LARGEST MARKET MOST IMPORTANT MARKET ON A PER CAPITA BASIS.

-

AND THE SINGLE

"JAPAN'S SECOND LARGEST TRADE SURPLUS IS WITH HONG KONG."

DOMESTIC CENT AND

IN HONG KONG'S MR CHEUNG SAID A 20 PER CENT GROWTH EXPORTS TO JAPAN WAS RECORDED IN 1988, DOWN ON THE 52.8 PER 38.7 PER CENT FIGURES FOR THE TWO PRECEDING YEARS.

FUR GARMENTS

IN 1987.*

"THIS WAS LARGELY DUE TO A DECLINE IN EXPORTS OF WHICH ACCOUNTED FOR A QUARTER OF DOMESTIC EXPORTS TO JAPAN HE SAID.

SINGLE

THE RANGE OF OUR DOMESTIC "THIS DEMONSTRATES THE FACT THAT EXPORTS TO JAPAN IS STILL NARROW AND THAT THE PERFORMANCE OF A IMPORTANT EXPORT ITEM CAN HAVE SUCH AN IMPACT.

"CLEARLY, THERE IS A NEED TO DIVERSIFY OUR EXPORTS TO JAPAN."

IMPORTS FROM JAPAN DIRECTION AND THE

MR CHEUNG NOTED THAT HONG KONG'S RETAINED WERE FOUR TIMES ITS DOMESTIC EXPORTS IN THE OTHER BALANCE OF TRADE HAD CONSISTENTLY BEEN HEAVILY IN JAPAN'S FAVOUR.

NO GRUDGES "AS A FIRM BELIEVER IN FREE TRADE, HONG KONG BEARS

DEMAND THAT BILATERAL TRADE BE AGAINST JAPANESE EXPORTS NOR DO WE BALANCED," HE SAID.

DEFICIT IS A MATTER OF

THE WELCOME

EFFORTS

"HOWEVER, THIS HUGE BILATERAL TRADE

WE THEREFORE UNHEALTHY. CONCERN TO US. IT IS BEING MADE BY JAPAN TO OPEN UP ITS MARKET FURTHER.

WHILE POINTING OUT HONG KONG'S GEOGRAPHICAL LOCATION MADE IT

MR CHINA. TO

CHEUNG SAID NOT MANY NATURAL AND EXCELLENT GATEWAY

TRADE THROUGH HONG KONG HAD PEOPLE

THAT SINO-JAPANESE INCREASED DRAMATICALLY IN RECENT YEARS.

REALISED

CHINA VIA HONG KONG "RE-EXPORTS OF JAPANESE ORIGIN GOODS TO

MILLION IN 1978 TO $40

$23.2 STAGGERING A JUMPED FROM A MEAGRE BILLION IN 1988 UP 584 TIMES IN 10 YEARS IN HONG KONG DOLLAR TERMS, HE SAID.

-

HE SAID JAPANESE BUSINESSMEN WELL OF INVESTING IN HONG KONG.

APPRECIATED

THE ADVANTAGES

A

KONG BEGAN TO GROW IN IN HONG "JAPANESE INVESTMENT

JAPANESE CONSIDERABLE VOLUME TWO YEARS AGO AND REPRESENTS TUE LARGEST INVESTMENT IN ASIA AND THE FIFTH IN THE WORLD DURING THIS PERIOD.

"JAPAN IS NOW THE UNITED STATES IN TERMS OF INDUSTRIES.

SECOND LARGEST IN INVESTMENT

SOURCE

AFTER THE COUNTRY HONG KONG'S MANUFACTURING

IS JAPANESE "ALMOST ONE IN SIX BANKS IN HONG KONG THERE IS HEAVY INVOLVEMENT IN THE CAPITAL WORKS PROGRAMME.

OWNED AND

MR CHEUNG FREDICTED FURTHER CO-OPERATION AND TRADING

LINKS IN

FUTURE.

18