TNAG-2126-FCO40-3036-Investment-in-Hong-Kong-1990 — Page 75

FCO40 Hong Kong Department Records 聯邦事務部香港部檔案 All

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The UK's share of the Hong Kong market has declined gradually in recent years. (Almost all suppliers have been losing market share to China.) At end-1986 it was 3.4%; at end 1988 was 2.6%;

In 1989 the UK was the eighth and by November 1989 was 2.3%.

largest supplier. As Hong Kong's economy and import market has expanded, so Britain has steadily lost out to Japan and then China, The United States has had and to a lesser extent Taiwan and Korea.

the same experience: like Britain it is selling more in Hong Kong,

It is inevitable that but at the same time losing market share.

China and the other regional suppliers should have a special advantage in Hong Kong. Freight costs are low for them, supply time is shorter and contacts between supplier and buyer are easier.

In 1989 our most 3 The UK's principal exports are capital goods. important export commodities were: electrical machinery; power generating equipment; road transport vehicles; general industrial machinery; textile yarn and fabrics; miscellaneous manufactured articles; chemicals.

4 The UK has traditionally performed well in Hong Kong's project sector: the Castle Peak power stations were built by GEC (with Babcock); Babcock built the Town Gas plant (phase 1), and in July 1989 secured the contract, valued at £70m, to build phase 2; and GEC and Metro-Cammell worked in unison on the Mass Transit Railway. The Hongkong & Sh. 1ghai Bank Headquarters was British designed (Foster Associate: Wimpey was joint main contractor. recently John Brown has secured a £40m contract with China Light &

A Power for a 300 MW Gas Turbine Power Station (March 1990). consortium including Gammon, a HK company jointly owned by Trafalgar House and Jardine, is building a road tunnel at

Tate's Cairn.

More

5 UK firms are keen to participate in Hong Kong's new airport project with its associated infrastructure and port facilities and are marshalling strong proposals for key areas of work.

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