TNAG-1621-FCO40-2235-Relations-between-Hong-Kong-and-China-1987 — Page 65

CONFIDENTIAL #2

CRC 24/86

(CEC 15/86)

Implications of Growing Hong Kong-China Economic Relations for the Hong Kong Economy

Part I: Introduction

Economic relations between Hong Kong and China

have undergone rapid growth and development since 1979.

These relations, which include merchandise trade (Table

1), tourism (Table 2) and business services, direct

investment, financial links (Table 3) and infrastructural

links (Tables 4, 5 and 6), together with their

implications for Hong Kong, have been examined in previous

papers. This paper attempts to provide a systematic

analysis of :

(i)

the sectoral impact of these economic relations

and an overall view of the present situation

(Part II),

(ii)

likely developments in the longer term (Part

III), and

(iii)

the role of the Hong Kong Government (Part IV).

Part II: Implications for various sectors of

the Hong Kong economy and an overall view of the present situation

2.

(a) Food supply and agricultural sector

In 1985, 42% of Hong Kong's imports of

foodstuffs, with a value of HK$8.8 billion, were from

G.F. 326

CONFIDENTIAL #≈