TNAG-1456-FCO40-1980-Future-of-Hong-Kong-annual-report-to-Parliament-on-Hong-Kong-1986 — Page 22

18

third quarter of 1986.

retained imports of industrial

Of

goods picked up in the

particular note were the

machinery for use in the manufacturing sector, which grew

by about 23% in real terms in the first nine months of

1986, after a decline of 4% in 1985 as a whole.

In the property market, demand for most types of

private sector property has been strong this year

reflecting a revival of interest in property investment

generally. Following a strong recovery in the property

market in 1985, prices and rentals held firm, while

trading in property was active.

(c) Trade relations

Hong Kong's longer term economic

performance

The threat of

remains dependent on external forces.

protectionism in Hong Kong's major export

particularly the United States,

remains.

markets,

For China,

while export prospects in the longer term appear good

given China's modernization drive, Hong Kong's domestic

exports and re-exports to China have been affected by its

tighter control on imports since April 1985.