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054457
MDHIAN 819
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BECAUSE OF HIGH PROMOTIONAL COSTS, SMALL PROFIT MARGINS AND TOUGH COMPETITION. MARKETS ELSEWHERE HAVE BEEN EASIER TO ENTER AND MORE LUCRATIVE. THE HIGH RELATIVE VALUE OF STERLING HAS UNTIL VERY RECENTLY ADDED ANOTHER HURDLE. OUR EUROPEAN COMPETITORS PARTICULARLY GERMANY HAVE NOT BEEN SLOW TO EXPLOIT THE OPPORTUNITY THIS HAS PRESENTED TO THEM (GERMANY IS NOW FIRMLY ESTABLISHED AS HONG KONG'S SIXTH SUPPLER. BRITAIN IS SEVENTH, WITH FRANCE, ITALY AND SWITZERLAND NOT TOO FAR BEHIND).
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4. BUT THERE ARE ENCOURAGING INDICATIONS THAT A KEENER INTEREST IN THE MARKET IS DEVELOPING AMONG BRITISH COMPANIES. THE NUMBER OF BUSINESS VISITORS IS BEGINNING TO INCREASE AFTER A NOTICEABLE DROP EARLIER THIS YEAR. SOME OF THE RECENT INTERNATIONAL EXHIBITIONS IN HONG KONG (EG LEATHER 91 AND IBEX 91) ATTRACTED STRONG GROUPS FROM THE UK WHO GENERALLY DID GOOD BUSINESS WHILE HERE. MANY OF THE RECENT VISITORS HAVE BEEN NEW-COMERS TO THE MARKET. WE HAVE NOTABLE STRENGTHS STILL IN ELECTRICAL MACHINERY AND POWER GENERATIONS EQUIPMENT SECTORS, TRANSPORT VEHICLES (RAILWAY ROLLING STOCK AND DOUBLE DECKED BUSES) AND EQUIPMENT, BEVERAGES AND TOBACCO MANUFACTURES, CHEMICALS (INCLUDING DYEING MATERIALS), SCIENTIFIC/CONTROL EQUIPMENT AND TEXTILE, YARN AND FABRICS. WE SCORE WELL ALSO IN SALES OF TELECOMMUNICATIONS EQUIPMENT, OFFICE MACHINES AND DATA PROCESSING EQUIPMENT AND IRON
AND STEEL FABRICATIONS.
5. A DISAPPOINTMENT RECENTLY WAS THE LOSS OF THE HKG ORDER FOR 6 PATROL BOATS TO THE AUSTRALIANS AFTER A LONG AND COSTLY COMPETITION. PRICE WAS PROBABLY THE SINGLE MOST IMPORTANT FACTOR IN THE AUSTRALIANS' FAVOUR (A RECENT FINANCIAL TIMES' REPORT HAS IT THAT THE AUSTRALIAN SHIPBUILDERS RECEIVED A 15 PER CENT
SUBSIDY FROM THEIR GOVERNMENT).
6. HONG KONG RIGHTLY REMAINS A HIGH PRIORITY MARKET IN THE BOTB'S FORWARD PLAN.
MAJOR PROJECTS
7. THE PROJECTS SCENE IS DOMINATED BY PADS. THE RECENT ACCORD WITH CHINA HAS BREATHED NEW LIFE INTO THE ECONOMY GENERALLY AND HAS INSTILLED A MOOD OF OPTIMISM AND ENTHUSIASM IN THE BUSINESS COMMUNITY HERE AND IN THE UK. THE RACE IS NOW ON TO WIN WHAT WILL BE AMONG THE LARGEST CONTRACTS ANYWHERE IN THE WORLD AT PRESENT. THE BTC AND THE DTI IN LONDON ARE IN CLOSE TOUCH WITH POTENTIAL BRITISH SUPPLIERS AND CONTRACTORS IN THE UK (AND THESE INCLUDE TRAFALGAR HOUSE, COSTAIN, BEAZAR, WIMPEY AND MEMBER COMPANIES
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