TNAG-1230-FCO40-1543-Visit-by-Richard-Luce--Minister-of-State-for-Foreign-and-Com-1983 — Page 213

FCO40 Hong Kong Department Records 聯邦事務部香港部檔案 All

KS

VISIT OF MR LUCE TO HONG KONG: 24-29 SEPTEMBER 1983

COMMERCIAL OPPORTUNITIES

POINTS TO MAKE

PA.

Mr Luce's

Wit

HKK

27

RECEIVED IN REGISTRY NO.

51

-

2 SEP 1983

DESK OFFICER

INDEX

PA

REGISTRY Action Taken

46)

1 Agree that UK export performance is not as good as we should like in some sectors

but point to increased interest shown in Hong Kong by UK firms in recent years.

Four sectors in particular where there is scope for increased UK export activity

are construction, textiles, electronics and quality consumer goods.

2 Point out HMG's firm commitment to the Hong Kong market for major project business.

Clear evidence of this is the fact that Hong Kong is ECGD's biggest exposure.

Delighted by British companies' success in winning major contracts such as Castle

Peak Power Station and the Mass Transit Railway. Very much hope for continuing UK

involvement on major projects now being considered, including the development of

Kai Tak.

3

Aware that UK response to investment in Hong Kong has been less than that of

the Americans and Japanese: the decision to invest overseas is for the commercial

judgement of individual firms.

4 The UK's only quantitative restrictions on imports from Hong Kong are those

on textiles.

BACKGROUND

1

Hong Kong accounts for 1.3% of total UK exports and, with Japan, is our major

market in the Far East. The UK's share of Hong Kong 's total imports increased to

4.8% last year, up 9.7% in value terms over 1981. Over the same period Hong Kong's

total imports increased by only 3.3%. A significant part of Britain's exports have

resulted from contracts for major projects. The UK is Hong Kong's largest supplier

after China, Japan, USA, Singapore and Taiwan and is considerably ahead of other

European suppliers. For many years the balance of trade has been in Hong Kong's

favour. (Detailed statistics are at Annex A.)

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