TNAG-1458-FCO40-1982-Relations-between-Hong-Kong-and-China-1986 — Page 54

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19.

Domestic exports to China showed a slight

increase in the second quarter of this year, reversing the declining trend since the fourth quarter of 1985.

Re-exports to China, on the other hand, continued to fall

(on a year-on-year comparison basis). Nevertheless, the rate of decline slowed down somewhat compared with the previous quarter. The value of domestic exports to China in the second quarter of 1986, at HK$4,213 million, was 5% higher than in the same period last year while that of

re-exports to China, at HK$9,664 million, was 25% lower.

For the first half of 1986 as a whole, the value of

domestic exports fell by 7% over the first half of 1985 to

HK$7,349 million, while that of re-exports dropped by 28%

to HK$17,628 million.

20.

Analysed by products, domestic exports to China

of textile yarn and fabrics, photographic supplies, optical goods and watches and clocks, and miscellaneous

manufactured articles rose, by 62%, 23% and 16%

respectively in money terms. The marked increase in the former may be related to increased outward processing activities as Hong Kong's domestic exports to major

overseas markets picked up substantially since March

1986. On the other hand, domestic exports to China of telecommunications, sound recording and reproducing

apparatus, tobacco, and electrical machinery were 25%, 21%

and 6% respectively lower in the second quarter of 1986 than in the same quarter last year. On the same basis of comparison, re-exports of telecommunications, sound recording and reproducing apparatus, electrical machinery, general industrial machinery and equipment, machinery

specialized for particular industries, and iron and steel

fell, by 66%, 46%, 29%, 18% and 13% respectively in money

terms. Re-exports of textile yarn and fabrics, however,

rose by 78.

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