XN000022-1992-10-21 — Page 4

2

WEDNESDAY, OCTOBER 21, 1992

LAST YEAR, INDIRECT TRADE PASSING THROUGH HONG KONG AMOUNTED TO HK$45 BILLION OR SOME 8.4% OF HONG KONG'S TOTAL RE-EXPORTS.

ABOUT ONE-QUARTER OR 4 MILLION TONNES OF THE TRANSHIPMENT CARGO HANDLED BY HONG KONG INVOLVED CHINA AS EITHER THE SOURCE OR THE DESTINATION, WHILE THE FIGURE FOR TAIWAN WAS 7 น OR 1.2 MILLION TONNES.

IF DIRECT LINKS ARE ESTABLISHED, PART OF THE EXISTING ENTREPOT TRADE PASSING THROUGH HONG KONG IS LIKELY TO BE CHANNELLED DIRECTLY TO CHINESE PORTS, MRS BOSHER SAID.

FURTHER, A PROPORTION OF CHINA-RELATED TRANSHIPMENT CARGO IS LIKELY TO BE DIVERTED AWAY FROM HONG KONG TO PORTS IN TAIWAN WHICH CURRENTLY HAVE A COMPARATIVE COST ADVANTAGE, SHE ADDED.

"THESE TWO DEVELOPMENTS WOULD PROBABLY HAVE THE EFFECT OF SLOWING DOWN GROWTH IN PORT THROUGHPUT IN THE SHORT TO MEDIUM TERM.

"HOWEVER, GIVEN HONG KONG'S POSITION AS A LEADING CENTRE FOR FINANCIAL, TRADE-RELATED AND TELECOMMUNICATIONS SERVICES, IT IS LIKELY TO REMAIN ATTRACTIVE AS A TRANSPORTATION HUB, SHE SAID.

AS REGARDS TOURISM AND AIR LINKS, SHE SAID HONG KONG WAS AN IMPORTANT GATEWAY FOR TAIWANESE TRAVELLING TO CHINA.

YEAR,

OF

THE SOME 1.3 MILLION TAIWANESE WHO VISITED HONG KONG LAST SOME 450,000 WENT ON INTO CHINA AFTER THEIR STAY IN HONG KONG.

"THE DEVELOPMENT OF DIRECT AIR LINKS WILL UNDOUBTEDLY RESULT IN SOME OF THOSE 450,000 TAKING DIRECT FLIGHTS FROM TAIWAN TO CHINA," SHE SAID.

ON THE OTHER HAND, MRS BOSHER SAID HONG KONG'S ATTRACTION TO TAIWANESE VISITORS AS A TOURIST AND BUSINESS DESTINATION IN ITS OWN RIGHT CONTINUED TO INCREASES.

"IN THE LONGER TERM, THEREFORE, IT IS LIKELY THAT A SHORT LOSS IN TRANSFER TRAFFIC WOULD BE OFFSET BY CONTINUING REAL GROWTH THE NUMBER OF VISITORS DESTINED FOR HONG KONG,' SHE SAID.

TERM IN

ON MAIL TRAFFIC, SHE SAID THE ESTABLISHMENT OF DIRECT LINKS WAS EXPECTED TO HAVE ONLY MINIMAL IMPACT.

13