TNAG-0457-FCO40-522-Future-of-financial-and-economic-policy-of-Hong-Kong-1974 — Page 5

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CONFIDENTIAL

remained fairly steady. Employment in the service industries has also held up, though some deterioration has probably occurred. since May.

Export Trade

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5. During the twelve month period to the end of June 1974. (the latest period for which detailed figures are available), Hong Kong's domestic exports increased, in quantitative terms by an estimated . This compares with an increase of about ' 3% over the corresponding period in 1972/73. The overall export results until June were therefore comparatively satisfactory. There are reports of increases in textile orders for delivery to Europe and the United States this winter, which appears to bear out the cautious optimism reflected in a recent survey of this important branch of Hong Kong's export industry.

6.

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The trade figures for October, however, are decidedly gloomy and seem to confirm earlier pessimistic forecasts regarding. Hong Kong's vulnerability to any general decline in world. economic activity. The value of Hong Kong's domestic exports fell by HK$275 million to $1,625 million, a decrease of 14.5% over October 1973. At the same time, the value of imports also declined, dropping by HK 548 million or 18.3% in comparison with the figure for October 1973.

7. The following table gives a list of comparative figures:

#

Increase or

Decrease

pm.

October

1974

October

1973

Pin.

3m.

Domestic Exports

1,625

1,900

-275 -14.5

(% of total exports)

(75.7%)

(71.8%)

Imports

2,455

3,003

-548

-18.3

Re-exports

(% of total exports)

521 (24.3%)

746 (28.2%)

-225

-30.2

/Domestic

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CONFIDENTIAL