TNAG-1621-FCO40-2235-Relations-between-Hong-Kong-and-China-1987 — Page 125

CONFIDENTIAL # 3

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Kong

(8)

•

For the first three quarters as a whole, the

value of Hong Kong's domestic exports to China amounted to

HK$12,204 million, representing an increase of 6% over the same period in 1985.

21.

Re-exports to China continued to fall (on a year-on-year comparison) in the third quarter of 1986. Nevertheless, there was clearly a slowdown in the rate of

decline. At HK$10,276 million in the third quarter,

re-exports to China were 6% lower than in the same quarter last year; in the first and second quarters, the declines

were 33% and 25% respectively. For the first three quarters as a whole, re-exports to China amounted to HK27,903 million, 22% lower than in the same period in

1985.

(8) Between January and September 1986, the Yen

•

appreciated by 51% against the Renminbi (compared

with an appreciation of 30% of the Hong Kong dollar

against the Renminbi). Partly reflecting this, China's imports from Japan declined by 16% in money

terms in the first three quarters of 1986.

G.F. 326

CONFIDENTIAL #