TNAG-1873-FCO40-2661-Relations-between-Hong-Kong-and-China-1989 — Page 256

G.F. 326

CONFIDENTIAL # 3

11

1988. During this period gross industrial output amounted

to Rmb 3.57 billion, retail sales to Rmb 2.28 billion, investment in capital construction to Rmb 1.14 billion and fiscal revenue to Rmb 595 million. All these indicators

were 40 to 50% higher than in the first half of 1987. The output value of industrial goods exported by Shenzhen City during the first half of 1988 was up 56% over the same period in 1987 and accounted for 51% of the City's total

industrial output. According to statistics from Kowloon

Customs i.e. Chinese customs statistics collected on the

Hong Kong Shenzhen border, Shenzhen exported US$1.35 billion worth of goods in the first half of 1988, up 86%

over the same period in 1987.

(II) Visible trade between Hong Kong and China

24.

Total

China remained Hong Kong's largest trading

(12). partner in the first half year of 1988 visible trade between Hong Kong and China, at HK$121.7

billion, increased by 34% in value terms over the same period in 1987. Such a growth rate was remakable given that the base for comparison in 1987 was already high. The corresponding year-on-year growth rate recorded in the

first half year of 1987 was 52%.

25.

China remained the second largest market for

Hong Kong's domestic exports and the largest market for

Hong Kong's re-exports in the first half year of 1988.

(12) According to China's Customs statistics, since 1987

Hong Kong has overtaken Japan to become China's largest trading partner. In 1987, Hong Kong accounted for 27% of China's overall external trade

(35% of its exports and 19% of its imports). Reciprocally, in that same year, China accounted for 27% of Hong Kong's external trade (14% of its domestic exports, 33% of its re-exports and 31% of its imports).

CONFIDENTIAL **