TNAG-1157-FCO40-1437-Visits-by-FCO-Ministers-to-Hong-Kong-1982 — Page 64

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interest rates are affecting the market. Similarly, the Hong Kong dollar has been affected by the strength of the US dollar: the Hong kong dollar's rate against the pound is very similar to that at the beginning of 1982. But of course we recognise that concern about the future has an effect. We are telling the

Chinese that their statements are damaging.

2.

COMMERCIAL OPPORTUNITIES

Hong Kong is now United Kingdom's biggest market in Far East. But still far below US and Japan. Particular scope for increased UK export activity in construction, textiles,

electronics and quality consumer goods.

3.

MAJOR PROJECTS

Hong Kong is ECGD's biggest exposure. Demonstrates HMG's firm commitment to Hong Kong. Delighted by British companies' success in winning major contracts such as Castle Peak, Mass

Transit Railway. We will aim to achieve more.

4.

TRADE RESTRICTIONS-

UK's only quantitative restrictions on imports from Hong Kong

are on textiles.

5.

MULTI-FIBRE ARRANGEMENT

Delighted that Ec and Hong Kong finally reached agreement. Hope

this will be ratified by Council of Ministers later this month.

During negotiations in November HMG pressed Hong Kong's case as

a territory free of tariffs.

6.

GUANGDONG NUCLEAR POWER STATION

HMG keen to participate in this. See it as major factor in strengthening links between Hong Kong, UK and China.

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