TNAG-0938-FCO40-1157-Visit-of-John-Nott--Secretary-of-State-for-Trade--to-Hong-Ko-1980 — Page 217

not 'always'?

& pastrankung

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I should now like to say a few words about Hong Kong's role in the

development of trade with China.

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Hong Kong has of course always had

very close trade links with China as the source of over one third of

China's foreign exchange, a major market for Chinese products and food-

stuffs, and as a window on the world for a country which until recently

had yay few channels of contact with foreign commercial organisations.

But the recent changes which we have witnessed in China's foreign trade

policy, with its emphasis on expanding China's exports both of tradi-

tional goods and of new products, on various forms of counter-trade and

compensation trade, and on joint ventures with foreign companies, has fusther increased the scope for Hong Kong's involvement with China. The fact

that the region around Shenzhen on the China/Hong Kong border has been

designated a special development area, where there are incentives for

Chinese organisations to collaborate with firms from Hong Kong and

elsewhere in setting up manufacturing plants, is evidence that the

Chinese authorities are well aware of the contribution Hong Kong can make

to the achievement of their foreign trade policies.

It is only natural that China should look to Fong Kong, with its close

geographical and commercial and ethnic ties as a place to try out new

ideas and learn about Western business methods, and as a prime source

of expert assistance in her new development plans. The British Govern-

ment welcomes these developments which we believe can only enhance the

present good relation's over Hong Kong which exist between the UK and

China. But I believe that Hong Kong can also play an important part as

an intermediary in bringing overseas rirms into collaborative projects

L with China. Indeed I know that this is already happening, I hope that

close thetics which bind Hong Kong to Britain (different but equally close

to the ties which bind Hong Kong to China) will ensure that British

companies feature prominently in such collaborative arrangements.

Certainly British companies have the sort of technological skills which

could profitably be grafted on to Hong Kong entrepreneurial skills to

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