CFM(68)39
13 September 1968.
(72)
Mr. Bailey, Room 205 Reaserciter and fit.
impolitical briefs
176
HER MAJESTY'S TREASURY
COMMONWEALTH ECONOMIC CONSULTATIVE COUNCIL
Meeting of Finance Ministers 1968
HONG KONG
Note by Commonwealth Office
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.
2. Trade The value of Hong Kong's external trade in 1967 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 lead to a general disruption of
The trade pattern of 1967 has continued during
the first half of this year with imports from China down on
corresponding period last year and her position as Hong Kong's
principal supplier at present being threatened by Japan.
communications.
the
3. U.K. Direct and Portfolio Investment. Little information
on this subject is available, but it is known that direct
/investment
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