TNAG-1483-FCO40-2037-Economic-situation-in-Hong-Kong-1986 — Page 5

D

BOBB

British Overseas Trade Board

IN CONFIDENCE

medium and long term. By contrast in many markets resources are limited almost to the point where no work is possible beyond that necessary to respond to demand from industry, and to maintain the availability of Board services in those markets consistent

Much of Latin America and Africa, as well as a with its basic objective. number of countries in South and South East Asia, fall into this category. Falling between these categories are markets which for a variety of reasons (lcn.

project term potential, nature of opportunities available, e.g. work, political structure) receive a modest degree of priority and initiative work (China/Hong Kong, Japan, Middle East). information and analysis of individual markets and market areas, produced by market branches in consultation with the Area Advisory Groups, Diplomatic Service Posts and FCO geographical departments, has been reviewed at a series of joint meetings with the market

The broad branch heads and Under Secretaries and the FCO. conclusions from that review process are summarised below.

WESTERN EUROPE

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The

In Market Branches there was a strong prima facie case for at least maintaining, and if possible increasing resources allocated to this area in view of the growing proportion of British and the fact that because trade which is conducted with W Europe; of e.g. the recent fall in the value of sterling against European currencies opportunities in the short and medium term looked better than in most other markets. Moreover many smaller firms were likely to begin exporting there. The task force' approach

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And the German Priorit was well established and yielding results. Year "Focus Germany" planned for 1987/88, while likely to be expensive in terms of market branch staff resource, correctly focussed on an important market where prospects were currently very good.

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France enjoyed 6

It was noted that both at home and overseas more resources than any other individual country within Western Europe. This was considered to be justified by the level demand: France was perceived by industry to be a difficult

It was market, particularly because of Non-Tariff Barriers. also particularly susceptible to initiative efforts such as task forces.

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It was noted that the proportion of commercial departments' staff resources accounted for by the Nordic countries, especially of locally employed staff, looked high in relation to the size of those markets. However this was considered to be a justifiable reflection of the fragmentation of the market. As a general commer on the staffing of commercial departments it was felt that Madrid and Barcelona were understaffed (although this was being put right) Athens seemed relatively generously staffed.

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