Sir Murray MacLehose said that the advantage the Japanese, in particular, had over British competitors in Hong Kong was that they were able to provide prompt delivery and back-up to sales. Those British companies which maintained stocks in the area, such as the Cohen Group which had a depot in Singapore, did well in Hong Kong. The Governor thought British exporters collectively should develop a trading strategy towards the whole Pacific Basin, and that the maintenance of stocks in the area would greatly increase their competitiveness. Sir Peter Thornton agreed that this was an idea . meriting further consideration.
On a more general plane, the Governor said that Hong Kong, having gone rapidly into recession in late 1974, had come just as rapidly out, and had now virtually recovered its position.
Its great
industrial flexibility gave Hong Kong the advantage of being able to respond rapidly to market revivals as and where they occurred. Asked whether Hong Kong would continue to rely primarily of textile exports, Sir Murray MacLehose said he expected the emphasis to move towards electrical goods and precision equipment over the next few years.
Concluding the meeting, Sir Peter Thornton confirmed that he would like, if possible, to combine a visit to Hong Kong with his planned visit to Japan in the coming October. Sir Murray MacLehose welcomed this.
Mike Perall
M V BOXALL PS/SECRETARY V/711
21 July 1976
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