ANNEX
UK/HONG KONG TRADE
1. The UK's balance of trade with Hong Kong is substantially, and
increasingly, in the Colony's favour:
UK/HONG KONG TRADE, 1962-73
£m
1962 1970 1971 1972 1973
Jan-September
1974
(Provisional
figures)
UK imports
55
UK exports
47
128 165 185 263
100 104 101 127
233
123
Hong Kong's
favourable
8
29
60 84
136
110
balance
2. Hong Kong is a free port, and Commonwealth tariff preferences are con- fined to motor vehicles and alcohol. The Hong Kong bus companies are also required to buy Commonwealth vehicles although the Governor may grant exceptions. Otherwise, there is no built-in preference for British goods; the discriminating Hong Kong purchaser places his order on the basis of the price, delivery and technical backing offered. In the last decade the UK's share of the rapidly expanding Hong Kong market has halved from 13% to 6% whereas Japan (a major supplier of semi-manufactures to Hong Kong industry) has increased its share to 23%. Britain has fallen to fourth place amongst Hong Kong's suppliers; our principal exports are machinery, transport equipment, fabrics and a range of consumer goods (partly for the growing tourist trade).
3. Concerted efforts to improve the UK's performance in the Hong Kong? market are being made by the Department of Trade, the British Trade Commission in Hong Kong and the Hong Kong Trade Advisory Group (an area advisory group of the British Overseas Trade Board). These were responsible for the staging in autumn 1972 of a major British Industrial Exhibition in Hong Kong, and a successful British Motor Show in February 1974. The number of sponsored missions has been increased (16 outward missions in 1973 and 19 planned for this year of which 16 have already gone), and during their visits to this country, contact has been set up with senior Hong Kong officials and businessmen who will influence the placing of major future contracts (eg for the rehousing of 14 million people; for
B
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