TNAG-1621-FCO40-2235-Relations-between-Hong-Kong-and-China-1987 — Page 76

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

CONFIDENTIAL # 3

12

it is likely that more feeder services to Hong Kong will

be established. This will strengthen the entrepôt status

of Hong Kong even in the longer term (paragraph 32).

29.

With regard to the distributive trades in the

local economy, PRC-controlled corporations have

traditionally been very active.

Department stores and

other retail outlets specialising in Chinese goods have

enabled many Chinese products to maintain a significant market share in Hong Kong. In recent years, the major

retail outlets of Chinese products have made considerable

effort in modernising their operations and improving their

services. PRC-controlled corporations have also entered

the supermarket business. One noticeable change has been

that such stores no longer stock only Chinese products.

(f) Transport

30.

China has become an intensive user of Hong Kong's external cargo and shipping facilities since its adoption of open door policies in 1979. This is in line with the important role played by Hong Kong in China's external trade (paragraphs 25 to 28 above). For example, in 1985, ocean transhipment traffic with China through Hong Kong amounted to 2.1 million tonnes of cargo, equivalent to 25% of the total volume of cargo transhipped

in Hong Kong. The actual volume of transhipment traffic

with China would be even larger if transhipment involving

other modes of transport, such as river vessels, were

included.

31.

Apart from cargo, Hong Kong also provides important passenger transport links between China and other parts of the world.

About 0.6 million foreign

G.F. 326

CONFIDENTIAL &

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