TNAG-1036-FCO40-1286-Future-of-Hong-Kong-1981 — Page 67

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trade gap in 1979 and 1980, that the UK will have sustained a

larger current account deficit for these years.

PROSPECTS

4.

Hong Kong is nevertheless one of our faster growing markets for manufactured goods outside of OPEC, and the

Sevenl major pro- prospects for UK exports are very good.

jects are planned in the transport and power generation fields that could lead to substantial exports for UK compan-

ies, i.e. Castle Peak 'B' Power Station, the Mass Transit Railway Island Line, the new airport, the Tuen Mun Light Railway, the Lantao/Mainland Fixed Crossing.

5. As long as Hong Kong remained a free-market economy,

whether or not it continued under British administration, a good portion of this trade, visible and invisible, would still take place. It is nonetheless true that the UK derives

some benefit from its special position in Hong Kong, in respect of work for Government tender and through goodwill towards Britain in the business community,(e.g. Sir Lawrence

Kadoorie and Castle Peak 'B'

6.

‚(e.g.

This special position can however operate against the UK when it is seen as raising trade barriers against the export:

The Multi-Fibre Arrangement of its dependent territory. comes up for re-negotiation this year and is likely to resul in more severe quota restrictions for Hong Kong textiles. Imports of electrical and telecommunications goods from Hong Kong are growing (14% of imports from Hong Kong in 1979) and are giving rise to calls for voluntary restraint on the part

of Hong Kong exporters.

ENTREPOT TRADE

7. Hong Kong's role as an entrepot for UK-Chinese trade is

In 1979,

not very significant in statistical terms.

/£4.2 millio

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