TNAG-1483-FCO40-2037-Economic-situation-in-Hong-Kong-1986 — Page 202

FCO40 Hong Kong Department Records 聯邦事務部香港部檔案 All

trade and processing arrangements between Hong Kong and China. For example, in the first half of 1986, textile yarn

and fabrics alone accounted for 19% of

of domestic exports to

China. Meanwhile, domestic exports of certain capital goods

and consumer durables to this market, such as office machines

and automatic data processing equipment, telecommunications and sound recording and reproducing apparatus and equipment,

as well as electrical machinery, apparatus and appliances,

registered substantial decreases (of 90%, 368 and 32% respectively) in value terms.

2.4

The depreciation of the Hong Kong dollar seems to have had a more significant effect on the competitiveness of Hong Kong's products in the Federal Republic of Germany than in other major markets. Domestic exports to this market, at $4,574 million in the first half of 1986, grew by 28% in value

terms or by about 29% in real

in real terms over the first half of

1985. With the exception of footwear, textile fabrics, and travel goods, handbags and similar articles, domestic exports of all major categories of products increased in real terms.

Domestic exports of clothing (accounting for 56%/% of total domestic exports to this market) grew by roughly 29% in real

terms. The rate of utilization of quota for textiles and

clothing as a whole was 35% at the end of June 1986, against

28% at the end of June 1985.

2.5

As regards the United Kingdom, the value of domestic exports to this market in the first half of 1986, at $4,224 million, grew by 8% in value

value terms or about 7% in real terms

compared with the first half of 1985. The latter growth rate

was made

made up of a decline of 38% in the first quarter and an

increase of roughly 16% in the second quarter.

The

improvement in the competitiveness of Hong Kong's products in the United Kingdom as a result of the depreciation of the Hong Kong dollar against sterling during most of 1985 and in the

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