TNAG-1457-FCO40-1981-Relations-between-Hong-Kong-and-China-1986 — Page 16

CONFIDENTIAL # 3

established towns and cities, principally on the coast.

Economic and technological development districts have been set up in coastal cities like Dalian, Tianjin, Shanghai and Guangzhou. In particular, in Southern China, the

Pearl River Delta region has emerged as one of the fastest growing areas of China with Guangzhou and the towns around

it as the main growth centre.

Visible trade between Hong Kong and China

17.

China remained Hong Kong's largest trading partner in the first quarter of 1986, despite a drop of 5% in the value of bilateral trade compared with the first quarter of 1985, to HK$26,341 million.

18.

Domestic exports to China accounted for 11% of

total domestic exports in the first quarter of 1986, compared with 14% in the first quarter of 1985 and 12% for

the whole of 1985. China remained the largest market for Hong Kong's re-exports in 1985, although its share declined substantially during the year. In the first quarter of 1986, re-exports to China accounted for 33% of total re-exports, compared with 46% in the first quarter

of 1985 and 44% for the whole of 1985.

Hong Kong's exports to China

Domestic

exports (HK$Mn)

Growth

rate #

Growth

Re-exports

rate #

(?)

(HK$Mn)

(*)

1985 Q1

ãããã

3,912

97

11,812

149

Q2

4,006

57

12,826

132

Q3

3,604

22

10,940

51

Q4

3,667

-3

10,445

-1

1985

15,189

35

46,023

64

1986 Q1

3,136

-20

7,964

-33

# in money terms, year-on-year

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