TNAG-0589-FCO40-722-Private-visits-of-leading-personalities-from-Hong-Kong-to-UK-1976 — Page 36

DEPT. OF TRADE

9

UK/HONG KONG TRADE

RECEIVED IN REGIST

-7 OCT 1976

HKK 121/548/3.

Our exports to Hong Kong are mainly capital goods and a range of high-quality consumer items and totalled £112.6m during the first 8 months of 1976; imports in the same period were £249.8m with clothing and textiles accounting for 65% (and 50% of all Hong Kong's exports). The trend over the last decade has been towards a widening gap in the Colony's favour reaching 2:1 in 1975 (UK imports £306.9m against exports of £157.4m). However, there has been recent success for British exporters over the Mass Transit Scheme (see paragraph 2 below) and other major projects, such as the development of Lantau Island as a holiday resort and

a second air-port, should offer good future opportunities. A major proportion of

Hong Kong's textile exports have now come under restraint as a result of the EEC/Hong Kong Agreement concluded under the GATT Multi-fibre Arrangement.

Mass Transit Underground Railway Scheme

2

British companies achieved considerable success in winning a major share of

mechanical and electrical engineering contracts awarded in August as well as a

number for civil engineering announced earlier in the year. Major awards include the prestigious rolling-stock contract to Metro-Cammell Ltd of Birmingham (valued at £35m) and the civil engineering for two underground stations (also valued at £35m) to J K Kier & Co Ltd.

Textiles:

Re-negotiations of the GATT Mult-fibre Arrangement

3 The GATT MFA expires in December 1977, and its operation is due to be

reviewed during 1976. Although there has been considerable criticism of the

MFA by the developing nations, it does seem likely that there will be some form

of extension beyond 1977 even if only as an interim measure. During official

discussions in London this February, the IIong Kong representatives, led by

David Jordan the Commerce and Industry Director, gave the impression that they

would be happy to see some form of continuation and, aware that some developing

nations held more extreme views, would attempt to temper such opinion.