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4. The Economy
mong long has no natural resources.
Prior to 1950 its
prosperity rested on üle entrepot trade, principally with Chinu. With the advent of the Communist woyern tent in Ohina and the elburgo on strategic exports to Ching at the time of the Korea war, the entrepot trade dwindled rapidly. In its place, industry (based very largely on the shills and capital of overseas Chinose) assu...od
& dominant role.
5. Hong Kong is now firmly established as a light industry economy
based on exports. It has rotalnod und devolopod a considerable
entrepot trade serving South Mast Asia and the Far East. fifth largest port (basically a free port) in the world.
It is the
The value
or the Colony's trade in 1966 was 81,104 million, placing mong Hong thirà amongst the trading countries of Asia and number twenty-live in the list or the world's trading countries.
5.
Without a substantiel Lomo merket, Long Mong's basically
industrial economy rests upon the opportunity to trade.
It is an ü
always will be very vulnorable in the event of any general downward turn in world trude or the adoption of more protectionist policies Although its growth by countries constituting its major markets. is in part self-generated it continue to be heavily dependent on outside capital. The Colony is today entirely self-supporting;
but, it could become a major liability in the event of a world trade recession or c? « crisis : confidence involving the cessation or
withdrawal of external investment, It would seem that such a liability must inevitably arise as its economy begins to run down
towards the end of the lease in 1997.
7.
Measured by exports, the growth rate in the economy has been
There are no indications of the order or 12-14. in recolle years. at prosent of a decline in this rute, but it ma, prove difficult to Maintain. Apart from the factors affecting the expansion of its crude noted in paragraph & above, long Hong's compotitive position can be expected to worsen (particularly viz-a-viz other 120w-cost
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