TNAG-0335-FCO40-371-Visits-of-Secretary-of-State-for-Foreign-and-Commonwealth-Af-1972 — Page 61

Registry No.

SECURITY CLASSIFICATION

Top Secret.

Secret.

Confidential.

Restricted.

Unclassified.

PRIVACY MARKING

..In Confidence

DRAFT

To:-

BRITISH TRADE INTERESTS

13.

Type 1 +

From

Telephone No. & Ext.

Department

Last year the value of two-way trade between the

UK and Hong Kong exceeded £269 million, with the

visible balance considerably in Hong Kong's favour.

Her exports to Britain, her second biggest customer,

in 1971 amounted to £165 million, of which textiles

and clothing accounted for £103.5 million. The

strong growth in exports to Britain particularly of

fabrics and

will

polyester/cotton garments is expected to slacken

following Hong Kong's recent agreement to restrain

shipments of these items.

year.

14. British exports to Hong Kong in 1971 totalled

£104 million - а 51 per cent increase on the previous

In the two important fields of electric and ctric and

non-electrical machinery, however, Britain is doing

well, with exports in 1971 up by 11 per cent and

36 per cent respectively on 1970. Even so, Britain's

overall share of the Hong Kong market, declining

Las

since 1968 it has stagnated at between 92per cent

This is

and 87 per cent in spite of the strong increase in

recent years in the demand for capital goods needed

for the Colony's industrial re-equipment and expansion

programmes. For these reasons, and to demonstrate

Britain's wish to strengthen traditional commercial

and other ties on her impending accession to the EEC,

(885363) Dd. 896639 1,000M 8/71 St.S.

NOTHING TO BE WRITTEN IN THIS MARGIN

/a major