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Tacilities. Air traffic rights at Hong Kong have been of increasing
importance to the United Kingdom in the negotiation of Air Services
Agreements with other countries; the monopoly of cabotage rights
at Hong Kong enjoyed by B.0.A.C. has been of great value to thut
Corporation. The SIMCOM telecommunication cable link between
Singapore and Australia passes through Hong Kong.
12. Economic
Our exports to Hong Kong in 1966 were 265 million f.o.b.
(or the same order as our exports to Japan). Prospects have been
good and indeed the level has risen from £41 million in 1960.
Exports cover a wide range, including a good deal of machinery and
transport equipment and other metal goods. A proportion goes on to
other markets through Hong Kong, but very little now goes on to
China. If the Hong Kong market was lost to us, we might save what
we could sell direct in the markets hitherto supplied through Hong
hong. Clearly a lot of those frustrated exports would be difficult
to sell elsewhere at first.
13. Our imports from Hong Kong in 1966 were £81 million c.i.f., of
which £30 million was in clothing and £18 million in textiles.
II
these imports were totally stopped, there would be some substitution,
particularly from other Bastern suppliers, or all types of goods
except textiles. We derive some economic advantage in being able to
obtain cheap supplies from Hong Kong; their exclusion might lead
to a rise in prices of certain goods in the United Kingdom. would, of course, be relief from the embarrassment (mainly political) caused by the competition of liong Kong exports with our textile and
certain light industries.
There
14. Our investment in Hong Kong and our earnings from such invest-
ment is an area in which figures and facts are subject to very
considerable doubt. Direct investment may be as high as 840 million
and portfolio investment about the same figure, making a possible
total of about £80 million. Earnings of profits and dividends are
comparatively modest - about £10 million a year. rong rong's
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