TNAG-0289-FCO40-325-Departmental-briefs-on-Hong-Kong-1971 — Page 172

-CONFIDENTIAL

Wade with Britain

asistenco to KROGELO

25. Textiles still account for a high though declining

percentage of fetal exports (about 45%).

Well over a half of

Hong Kong's exports go to three markets (United States,

United Kingdom on Western Germany) but sales to some othe

countries in Westem Europe are rapidly increasing. Tong

Kong consistently imports more than it exports but in recont

years the adverse balance has been more than made up by

inflows of capital and by carnings from shipping, insurance

and banking services and from tourism.

26. Hong Kong trade with the United Kingdom shows a

considerable imbalance in Hong Kong's favour. The Britich

market, which took approximately 14% of Hong Kong's domestic

exports in 1969, is important to the Colony not only becaucc

of its size but alco because of the benefits of Commonwealth

preferencaB. Those provide llong Kong industry with the

opportunity to try out new products in a "domestic market"

which le lacking in Hong Kong. United Kingdom exports to liong Kong in 1969 totalled 2827. (or 8% of all Hong Kong

imports). Our exports, while showing an increase in valuc

in the last few years, reprosant a continually shrinking share of the Hong Kong market, of which Japan (23%), China

(18%) and the USA (13%) hold the largest shares. The main

British exports are machinery, non-metallic mineral

manufactures, toxtile yarns and transport equipment.

27. The success of Hong Kong exports has led to counter pressure from industries in importing countries for import restrictions on Hong Kong goods. This prosauro first

developed in the field of cotton textiles and exports of auch

products to a number of countrice are now restricted by

/ agreemente

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CONBE