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COLONIAL
OFFICE
ternational airport at Kai Tak is a valuable point on trunk and rogional
major air routes and the Colony providos the only aircraft repair facilities for
thousands of miles. Air traffic rights at Hong Kong havo boen of increasing
importance to the United Kingdom in tho nogotiation of Air Servicos Agroo-
monts with other countriɔs; the monopoly of cabotago rights at Hong Kong
enjoyod by 3.0.A.C. has boon of great value to that Corporation. Tho
SEACOM telocommunication cable link botwoon Singapore and Australia passos
through Hong Kong.
12. Economic. Our exports to Hong Kong in 1966 woro £65 million f.o.b.
of the same withers (greater than your oxports to Japan). Prospects have boon good and indood the lovel has rison from £41 million in 1960. Exports cover a wide rango,
including a good doal of machinory and transport oquipment and othor metal goods. A proportion goos on to other markets through Hong Kong, but vory littlo now goos on to China. If the Hong Kong markot was lost to us, wo might
savo what we could soll direct in the markots hitherto supplied through
Hong Kong. Cloarly a lot of those frustrated oxports would be difficult to
soll olsowhore at first.
13. Our imports from Hong Kong in 1966 wore £81 million c.i.f., of which £30 million was in clothing and £18 million in toxtilos. If those imports
word totally stoppod, thoro would bo sono substitution, particularly from
[ Take in slip] othor Eastern suppliors, of all types of goods oxoont tovtsino
derwe
Some economic advantage in being able to obtain cheap supplies from Hong
Kong;
be
their exclusion might lead to a vise certami goods in the United
in preces of
Kingdom.
There would
of course,
be relief
from the embarrassment (mamily political) caused by the HAHAAAAMAA Competition of Hong Kong exports with textile and certami light
M&AM
light widustries.
amy
Brolling backing in tno currency fund (£194 million).
15. Hong Kong is a mombor of the sterling aroa and koops its rosorvos in storling; but in practico the Colony has boon grantod wido disponsations from the ordinary rulos of momborship. Spodial arrangononts have baan made to
omblo tho antropot trado to continuo which involve permission for a froo
market in U.S. dollars.
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/16. Hong Kong's
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