TNAG-1457-FCO40-1981-Relations-between-Hong-Kong-and-China-1986 — Page 89

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controls over the importation of consumer items seems

unlikely in the near future. On the other hand, in order

to speed up the modernizations programme, the importation

of technology has been greatly encouraged. China has

announced a plan to import 3,000 advanced technological

items in the period 1986 to 1988. The change in China's

import pattern will have a significant bearing on Hong

Kong's exports to China. In the short term, Hong Kong's exports of consumer items to China will almost inevitably

experience a decline. In the medium to long term, to the extent that the product composition of Hong Kong's exports can be adjusted to serve the development needs of China

and that China is able to relax its restrictions in the

future, there is still room for further growth in Hong Kong's exports to China.

36.

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A statistical appendix on Hong Kong

economic relations is attached.

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China

Economic Analysis Division Economic Services Branch Government Secretariat 27 March 1986

CONFIDENTIAL #3