TNAG-1847-FCO40-2622-House-of-Commons-Select-Committee-on-Foreign-Affairs-enquiry-1989 — Page 96

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A British Chamber of Commerce has been established. It welcomes associate members from Britain and offers, among other services, office accommodation for visitors. The practical result of all the extra activity has been increased business with Hong Kong. So far as merchandise trade is concerned our major sales are of electrical machinery, transport equipment, textiles and garments, manufactured articles, generating equipment and chemicals. And then its across the board including food, tableware, giftware, even a hundred tons of poultry feet, a great delicacy here.

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A good proportion of our extra sales has been achieved by the many more smaller companies who are now in the market. Their enthusiasm has been remarkable. So has the range of products they have offered for sale. A businessman in Wanchai the Suzie Wong area has just bought British hot potato machines for his girlie bars. He saw them in our Britain Trades bulletin. Other products have been shown at the Trade Commission. Within the last few months, we have had a team of food suppliers; a British software company has launched a new product; nine Government Ministers have been here to promote trade; British meat exporters have been here selling more of their products (since their first visit, a year ago, we have seen our meat exports double); so far this year, this room has seen the presentation of British computers to the Third University; the launching of another company's hardware and the introduction of hair products by the British Hairdresser of the Year. We welcome this use of the office. Although the Trade Commission can and does identify opportunities and report them and can offer advice and contacts and facilities, it can't sell. Only businesspeople can do that.

I mentioned the increased number of smaller companies in the market. The larger British groups also remain very active in Hong Kong, pursuing the big infrastructure projects and other major contracts. Competition is very

keen.

But flexibility and ingenuity can and do secure business, sometimes in joint venture partnerships and from sub-contracts. We have evidence of some very good electrical and mechanical sub-contracts being won by British companies. We have also seen contracts for dockside cranes landed by a British company against strong competition from Japan. A British company have won a £10m contract for traction equipment for the underground railway: they offered a better system than a Japanese competitor, and cheaper. There has been a sale of a million pounds worth of Rolls Royce motor cars. Jaguar are selling 27 cars a month. The new Rover has been introduced and the newest Bentley. New British carriages have been ordered for the Kowloon-Canton Railway, worth £50M. There is British involvement in the consortium that is constructing a tunnel through Tate's Cairn. A new generator has been ordered from Britain by the Hong Kong Electric Company. British companies are doing well with sub-contracts. We were disappointed to lose the recently completed light rail system but British companies finished up with most of the sub-contracts: the track, power lines, communications, workshops and much more. The same pattern is occuring in other projects.

. One very large proposal that we have been tracking closely is a scheme for a new airport. This is a private sector proposal now being considered by the Hong Kong Government. If it goes ahead, we hope there will be good opportunities for British firms. We are encouraging UK companies to register their interest in the project. Many other projects appear in our big projects list. More hospitals and extentions are being planned, and there is the third university I mentioned. The highways department alone has 40 projects currently under construction that will cost £271m. Another 80 road projects are planned.