TNAG-1748-FCO40-2467-Visit-by-Sir-Geoffrey-Howe--Secretary-of-State-for-Foreign-a-1988 — Page 172

-2-

months:

there

The UK share has been under five per cent for many years and dropping

steadily (though we have been selling more). Encouragingly,

was a slight twitch upwards in our share in the latest figures. It is

too early to say if this will be sustained but the portents are

good. Britain has won a number of big orders in the last nine

electrical and mechanical equipment sub-contracts for the

Eastern Harbour Crossing; more cranes for the container port;

traction equipment for the underground railway; carriages for the

Kowloon-Canton railway, a fleet of Rolls

Rolls Royce motorcars; a new generator for the Hong Kong Electric Company and there is British

involvement in a consortium that will build a road tunnel at Tate's

Cairn. In two cases these contracts were won in association with a

Japanese firm; in almost all the others the orders were won against

strong Japanese competition. The strength of the pound is counting

against British suppliers but SO far they are continuing to win

orders.

The Trade Commission includes a China Trade Unit. Members of the

unit, who belong to the Embassy in Peking, travel into Southern China

from Hong Kong and also liaise with China traders established in the

territory.

The

Senior Trade Commissioner, Reg Holloway, regrets that he will be in London (talking to business groups) during the Secretary of

State's visit. The Acting Senior Trade Commissioner, Chris Hayward, will show the Secretary of State the office (which has an impressive

computer installation) after which there will be a reception for all

the Diplomatic staff in Hong Kong.

REH/mcs

9 May 1988