RESTRICTED
- 2
according to a recent report, now consider it to be one of their priority markets. However, there is still much to be done in the manufacturing sector and plans are being made for a major all- British industrial and technological exhibition in 1977.
UK IMPORTS FROM HONG KONG
4.
Despite recent attempts at diversification, over 50% of Hong Kong's total exports are still in clothing and textiles. This pattern is reflected in Hong Kong's exports to the UK, where these goods represented 67% of Hong Kong's total exports in 1975. Some 87% of Hong Kong's textile exports to the UK are now restricted by the EEC/Hong Kong Textiles Agreement concluded in August 1975 under the GATT Multi-fibre Arrangement and due to run until December 1977. The UK now ranks as Hong Kong's third largest export market, taking 12.1% of her exports compared to 32% in the case of the United States and 12.5% in the case of the Federal
Republic of Germany.
MASS TRANSIT UNDERGROUND RAILWAY SYSTEM
5. British exporters have recently achieved considerable success, in the face of strong competition from the Japanese, in winning a substantial share of the mechanical and electrical engineering contracts for this major project. Of contracts valued at £70m, British companies were awarded business totalling £54.4m, including the prestigious rolling-stock contract (estimated at £35m) awarded to Metro-Cammell of Birmingham. This followed successes in the civil engineering side with a major contract (also valued at £35m) for two
underground stations going to J K Keir and Co Ltd.
LINE TO TAKE
6.
The PUS might take the opportunity to draw Mr Pao's attention to the continuing and widening deficit in UK/Hong Kong trade and,
at the same time, to point out that there is strong and continuing pressure in this country for import controls. Hong Kong is often singled out in this context. While acknowledging that British
/exporters
RESTRICTED
Page 15Page 16
No comments yet.
Private notes are available after approval.