XN000022-1993-01-08 — Page 2

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FRIDAY, JANUARY 8, 1993

1

GOOD TRADE PERFORMANCE IN 1992

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THE SECRETARY FOR TRADE AND INDUSTRY, MR TH CHAU, TODAY (FRIDAY) OUTLINED THE OUTSTANDING TRADE PERFORMANCE OF HONG KONG IN 1992.

SPEAKING AT A MEET-THE-MEDIA SESSION, HE SAID IN THE MONTHS OF 1992, THE VALUE OF TOTAL EXTERNAL TRADE AMOUNTED $1,700 BILLION, REPRESENTING AN INCREASE OF 22 PER CENT WHEN WITH THE SAME PERIOD IN 1991.

FIRST 11 TO OVER COMPARED

PER

CENT

HE NOTED THAT MUCH OF THIS INCREASE WAS DUE TO A 30 INCREASE IN THE VALUE OF RE-EXPORTS, PARTICULARLY RE-EXPORTS INVOLVING CHINA.

TRADE WITH

THAT

OF OUR

"THIS UNDERLINES THE ENORMOUS IMPORTANCE OF OUR CHINA TO HONG KONG'S ECONOMY, IN THE FIRST 11 MONTHS OF 1992, TRADE INCREASED BY 26 PER CENT AND ACCOUNTED FOR 33 PER CENT TOTAL TRADE.

ECONOMIC CONDITIONS

IN

"THIS HAS MEANT THAT DESPITE THE POOR OUR MAJOR MARKETS, OUR TOTAL EXPORTS HAVE CONTINUED ΤΟ ACHIEVE A SUBSTANTIAL GROWTH RATE," HE SAID.

IN 1992,

FIGURES PUBLISHED BY THE GATT SHOWED BASIS OF 1991 TRADE STATISTICS, HONG KONG HAD MOVED UP LEAGUE OF TRADING ENTITIES FROM 11TH TO BECOME THE TRADING ENTITY IN THE WORLD, MR CHAU POINTED OUT.

THAT, ON THE IN THE WORLD 10TH LARGEST

ADDING THAT

THIS WAS A TRULY AMAZING ACHIEVEMENT, HE SAID THIS WOULD NOT HAVE BEEN POSSIBLE WITHOUT "OUR CHINA TRADE"

HOWEVER, HE NOTED THAT CHINA AT THE SAME TIME HAD BENEFITED FROM INVESTMENTS THROUGH HONG KONG.

**THIS IS A RELATIONSHIP OF MUTUAL BENEFIT AND THE ECONOMIC INTERDEPENDENCE LOOKS SET TO CONTINUE, HE SAID.

THAT

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ON OTHER SIGNIFICANT DEVELOPMENTS IN 1992, MR CHAU POINTED OUT HONG KONG, THROUGH THE JOINT EFFORTS OF THE GOVERNMENT AND THE PRIVATE SECTOR, HAD SUCCESSFULLY PUT ACROSS TO THE UNITED STATES THE DAMAGE THAT WOULD BE DONE TO HONG KONG'S ECONOMY IF CHINA'S MOST- FAVOURED-NATION (MFN) STATUS WERE WITHDRAWN OR

WITH CONDITIONS.

RENEWED

U.S. LAW WAS

HOWEVER, HE CAUTIONED THAT UNTIL THE RELEVANT CHANGED, THE MFN ISSUE WOULD REMAIN AN ANNUAL BATTLE FOR HONG KONG.

"THE HONG KONG GOVERNMENT IS REVIEWING ITS LOBBYING STRATEGY AS WELL AS RESOURCES, WITH A VIEW TO STRENGTHENING THE HONG KONG TEAM IN WASHINGTON AND TO ENSURING THAT IT IS EQUIPPED FOR THE NEW POLITICAL SCENE IN THE U.S.. HE SAID.

"

TURNING TO OTHER AREAS, MR CHAU NOTED THAT IN DECEMBER 1992, THE GOVERNMENT BECAME A SHAREHOLDER OF TRADELINK WHICH WOULD START PROVIDING A COMMUNITY ELECTRONIC TRADING SERVICE (CETS) IN 1994/95.

MR CHÂU