TNAG-1748-FCO40-2467-Visit-by-Sir-Geoffrey-Howe--Secretary-of-State-for-Foreign-a-1988 — Page 168

to be at least equal to, and probably more than, the value of the

UK's visible exports to HK.

6.

The UK's share of total external manufacturing investment in Hong Kong is approximately 7% (far less than that of Japan and the USA, which together account for about 75%). But in terms of the

total number of establishments from elsewhere the UK is second only

to the USA.

Hong Kong's economy is very buoyant. GDP growth in 1986 was

12% and in 1987 was 13.5%. GDP growth of 5% has been forecast for

1988 still good by the standards of many economies.

7.

-

A British Chamber of Commerce was formed in Hong Kong in March

1987 and was inaugurated by the Governor on 19 May 1987.

8.

British commercial representation in Hong Kong is through the

British Trade Commission (Senior Trade Commissioner:

9.

Mr Reginald Holloway). A note by Mr Holloway on the work of the

British Trade Commission is attached.

10. The British Overseas Trade Board (BOTB) has an area advisory group advising on export strategy for the Hong Kong market: The Hong Kong Trade Advisory Group. Its Chairman is Mr George Govan, a

Director of Frayland Ltd and formerly Managing Director of Babcock

Contractors Ltd.

11.

24 DTI-supported outward trade missions visited Hong Kong in 1987; there were 6 joint ventures at international exhibitions and one promotion of British consumer goods at Matsuzakaya, a Japanese department store in the territory, in October/November. Dodwell/BHS will mount a major promotion of British goods (again with DTI support) in autumn 1988.

The Multi-Fibre Arrangement

12. The MFA, under which the EC restricts imports of textiles and

clothing from a number of low-cost supplier countries, was renewed for a further five years in July 1986. Most of the EC's bilateral