TNAG-1623-FCO40-2237-Relations-between-Hong-Kong-and-China-1987 — Page 177

CONFIDENTIAL ☆ ☆

14

Guangdong overtook all other provinces (and municipalities) to become China's largest exporting province. Current indications are that the Pearl River Delta region is one of the fastest growing areas in China.

Visible trade between Hong Kong and China

(all growth rates being expressed in money terms)

26.

China remained Hong Kong's largest trading partner in the fourth quarter of 1986. Total visible trade between Hong Kong and China, at HK$43,776 million in that quarter, increased by 35% over the same quarter in 1985. For 1986 as a whole, total visible trade between Hong Kong and China rose by 17% to HK$140,549 million.

27.

China remained the second largest market for Hong Kong's domestic exports and the largest market for Hong Kong's re-exports in the fourth quarter of 1986. Domestic exports to China accounted for 13% of Hong Kong's

domestic exports in the fourth quarter of 1986, compared with 11% in the preceding quarter and 10% in the fourth quarter of 1985. Re-exports to China accounted for 35% of Hong Kong's total re-exports in the fourth quarter of 1986, compared with 32% in the preceding quarter and 39% in the fourth quarter of 1985.

G.F. 356

CONFIDENTIAL & B