TNAG-1230-FCO40-1543-Visit-by-Richard-Luce--Minister-of-State-for-Foreign-and-Com-1983 — Page 55

COMMERCIAL OPPORTUNITIES

ESSENTIAL FACTS

Trade

1. Hong Kong accounts for 1.3% of total UK exports and, with Japan, is our major market in the Far East. UK's share of Hong Kong's total imports increased to 4.8% last year, up 9.7% in value

terms over 1981. Over same period Hong Kong's total imports

increased by only 3.3%. Significant part of UK exports resulted

from contracts for major projects. 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

balance of trade has been in Hong Kong's favour.

UK exports to Hong Kong

£ million

1980

1981

1982

Jan-June Jan-June

1982

1982

559.4 618.5

732.5

(+26.5%) (+10.6%) (+18.4%)

392.1

348.9

(-11.0%)

UK imports from Hong Kong

850.3 896.6

(+23.1%) (+5.4%)

872.5

(-2.7%)

450.0

645.9

(+51.9%)

Balance to the UK

-290.9

-278.1

-140

-32.9

-297

(Detailed statistics at Annex A)

2. Hong Kong has no natural resources. Completely dependent on

international trade. Around one half of Hong Kong's imports are of

raw materials and basic foodstuffs. Much of this obtained from

South-East Asian countries. UK and other distant suppliers cannot

compete.

3.

Hong Kong's largest industry is textiles and clothing: 40% by value of total domestic exports. Almost half of UK's imports from