TNAG-0839-FCO40-1048-Relations-between-Hong-Kong-and-China-1979 — Page 74

wwww

الأدلدلدا

Kong:

we must learn to do business and welcome Hong Kong businessmen to build hotels"), there is yet no evidence of contracts being signed.

16. Composition of Chinese exports to Hong Kong. A well

established economic link between China and Hong Kong provides for the former's supply of rice, fish and fresh farm produce. Supplies of the staple, rice, have been regulated by a control scheme operated by the Hong Kong Government since 1955. The object of the scheme is to ensure regular and adequate supplies of rice to consumers at reasonable prices. Restrictions under the scheme limiting imports of rice from China to 30% of consumption were lifted in 1973. Since then, rice from China has increased to the current level of about 60% of rice consumed in Hong Kong China also supplies about 45% of vegetables consumed in Hong Kong, 85% of the pigs, 61% of the cattle, 39% of the live birds, 39% of fresh fruit, 73% of the eggs and about 78%

of fresh-water fish. Demand seems to have steadied at these levels and is unlikely to grow much higher.

17. Hong Kong and China first concluded an agreement on the supply of water to the Colony in 1964. Since then a number of increases in quantity and price have been agreed. Under the present agreement, China will supply 145 million cubic metres (at a cost of $50 million) for the period 1978-9, rising to 182 mcm ($73 million) by 1982-3. China is currently considering a request to supply 620 mcm ($277 million at the current price) by 1994-5.

18. China is Hong Kong's sole source of supply of marine sand, an essential material for the Colony's construction industry. In 1978 China supplied 991,000 metric tons valued at $33.6 million. This represents a 25.9% increase in volume and a 35.4% increase in value over 1977. Future

purchases will depend on the demand from the building industry and China's capacity to quarry and supply sand.

19. In recent years China has met an increasing proportion of Hong Kong's demand for oil and oil products.

In 1978, well over half of Hong Kong's gas oil and diesel fuel imports and 25% of aviation fuel imports were from