TNAG-0047-FCO40-83-Britain-s-entry-into-EEC-effect-on-trade-with-Hong-Kong-1967 — Page 15

CONFIDENTIAL

DRAFT

Negotiating Brief on Hong Kong

68/€

Hong Kong's Trade with Britain and the E.E.C.

Hong Kong's domestic exports in 1966 totalled £358 million,

having more than doubled in value since 1960. Her principal

markets in 1966 were the U.S.A. (£127 million or 35.6% of

total domestic exports), the U.K. (61.7 million or 17.2%)

and the E.E.C. (£40.8 million or 11.4%). Hong Kong's

domestic exports to the U.Ki rose by 9% per annum between

1960 and 1966: her exports to the E.E.C. rose by over 28%

per annum over the period. In absolute terms, domestic

exports to the U.K. rose by about £25 million, and to the E.E.C.

by over £31 million. About two-thirds of the increase in

exports to the E.E.C. were to West Germany, which took 64.5%

of Hong Kong's domestic exports to the Community in 1966.

France's imports from Hong Kong, although increasing, were

still less than 1% of Hong Kong's domestic exports. The

U.K.'s share of Hong Kong's domestic exports has tended to

fall in recent years; after rising from 20.4% in 1960 to

22.5% in 1963, it fell to 17.1% in 1965 and 17.2% in 1966.

The E.E.C.'s share has risen steadily from 5% in 1960 to

11.4% in 1966.

2. Hong Kong's main exports to us (including re-exports)

were as follows (their value in each case is expressed in the

first bracket as a percentage of total exports of that item

and in the second bracket as a percentage of Hong Kong's total

exports of all commodities):

Clothing

£20.8 million

(18.5%) (5.1%)

Textile Yarn Fabrics and made up Articles

£15.4 million

(23.4%) (3.8%)

Miscellaneous manufactured items

Footwear

Machinery, Apparatus and Appliances

6.9 million

£ 3.8 million

(11.0%) (1.7%)

(39.5%) (0.9%)

£ 2.7 million

(11.6%) (0.7%)

CONFIDENTIAL

/Precious

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