TNAG-1623-FCO40-2237-Relations-between-Hong-Kong-and-China-1987 — Page 184

CONFIDENTIAL #3

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32.

Hong Kong's imports from China have been

increasing rapidly since the fourth quarter of 1985. In the fourth quarter of 1986, the value of such imports, at

HK$24,968 million, was 37% higher than in the same quarter

in 1985. For 1986 as a whole, the rate of increase was

38%. Part of this increase was due to a rapid growth in

re-exports of China origin, reflecting the success of China's efforts to promote its exports. In the fourth

quarter of 1986, the value of such re-exports increased by 65% over the same quarter in 1985. The increase in compensation trade and outward processing arrangements is another factor behind the substantial increase in imports

from China.

Hong Kong's imports and re-exports from China

Imports from China

Growth rate #

(HK$Mn)

(8)

Re-exports of China origin* (HK$Mn)

Growth

rate #

(૪)

1985

01

12,094

-3

7,464

19

Q2

13,572

-6

8,281

17

Q3

15,090

5

9,069

24

Q4

18,206

26

9,815

31

Annual

58,963

6

34,628

23

1986

Q1

15,241

26

9,489

27

Q2

19,650

45

11,778

42

Q3

21,774

44

14,143

56

Q4

24,968

37

16,188

65

Annual

81,633

38

51,597

49

#

in money terms

*

re-exports of China origin are a part

of Hong Kong's total imports from China

CONFIDENTIAL 2