TNAG-0005-FCO40-41-Departmental-briefs-about-Hong-Kong-1968 — Page 109

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30.7.68.

COMMONWEALTH ECONOMIC CONSULTATIVE COUNCIL

MEETING OF FINANCE MINISTERS 1968

HONG KONG

Note by Commonwealth Office

Folitical

Since the beginning of 1968 communist confrontation in Hong

Kong has taken on a new form, It has virtually eschewed the

violence of last year's disturbances and has developed into a

long term struggle for the hearts and minds of the people of the

Colony. As part of this struggle the communists maintain a

continuous campaign of anti-British propaganda and criticism of

the Hong Kong Government whose authority they unceasingly seek to

undermine. Hong Kong has so far successfully withstood all the

efforts of the communists to gain their ends but the Colony will

continue to need encouragement and support in maintaining its

position against these persistent attacks.

Economic

PA

Trade

2. Generally, throughout 1967 there was continued economic

growth. The value of Hong Kong's external trade (the most

Hạng King's important indication of the level of economic activity) was

maintained at a high level despite the internal disturbances.

Domestic exports increased by 17% (over 1966 figures), while

re-exports went up by 14%. Imports showed only a slight increase

compared with previous years, partly because imports from China,

Hong Kong's principal supplier, dropped by 18%. This appears to

have been due not so much to events in Hong Kong as to unsettled

conditions in China which had led to a general disruption of

communications. The trade pattern of 1967 has continued during

the first five months of 1968 with imports from China continuing

to decline and China's position as Hong Kong's principal supplier

being threatened by Japan.

/ U.K.

direct