TNAG-0742-FCO40-946-Relations-between-China-and-Hong-Kong-1978 — Page 151

P.2

import technology from Hong Kong to set up factories with items produced for-export. A careful analysis shows that the new trading attitude of China places Hong Kong in the disadvantage. In the long run, the establishment

of, export-orientated factories in China may prove to be the prologus to closure and retrenchment of factories or even unemployment in HK, and ultimately

producing a damaging effect on HK's economic future.

It is by providing auxiliary services in trade and industry to China that Hong Kong. can play an important role as a middleman in the development

of China's external trade.

Issue Number : 54/78

Date: 12/7/78