TNAG-0385-FCO40-431-Trade-relations-between-Hong-Kong-and-the-EEC-1974 — Page 6

3

Tuesday, December 11, 1973

1

As regards our trading performance we have so far done better

this year than might at one time have been expected. In the first ten

months of this year, our domestic exports increased by some 23%, our

re-exports by 57% and our imports by 28% compared with the same period

last year. Though two-thirds of this might be attributable to higher

prices, nevertheless these are encouraging figures in which you as

industrialists can rightly take pride. I think they also show that

our policy of maintenance of a strong currency has proved, as we had

hoped, compatible with a strong export position.

improvement in the fortunes of the United States dollar is a welcome development

which augurs well for future economic developments in our largest market.

Overseas, the recent

Next, the new problems, The first is the serious problem of

shortages of essential raw materials and semi-manufactured materials which

has developed with some rapidity, coupled in some cases by price rises of

a size unprecedented in recent times. Virtually every one of cur export

industries is experiencing difficulty in securing an adequate supply of

raw materials, and price increases have occurred where raw materials are

available. It is difficult for us to influence production in the supplying

countries and have had to depend largely on the vigour and skill of our

traders to secure the materials so ressential to our economic well being.

But we are not entirely helpless and, wherever possible, the Government

has taken steps to improve the supply position. It will continue to do

all in its power.

This is a field of the greatest importance. I assure

you the Government will continue to maintain the closest possible contact

with industry about it.

/I come

......