TNAG-2353-FCO40-3423-Visits-by-Lord-Caithness--Minister-of-State-for-Foreign-and--1991 — Page 177

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MY SECOND IPT: LORD CAITHNESS'S VISIT TO HONG KONG AND CHINA: 26 NOVEMBER-7 DECEMBER 1991: HONG KONG'S TRADE RELATIONS WITH

SOUTHERN CHINA.

1.

SINCE THE ADOPTION OF 'OPEN' POLICIES BY CHINA IN LATE 1978, HONG KONG'S ECONOMIC RELATIONS WITH CHINA, ESPECIALLY THE SOUTHERN PROVINCES, HAVE UNDERGONE SIGNIFICANT CHANGE AND GROWTH.

2. THE DEVELOPMENTS THAT HAVE TAKEN PLACE IN THE PAST DECADE HAVE BROUGHT ABOUT SUBSTANTIAL CHANGES TO THE ECONOMIC STRUCTURE OF HONG KONG AND SOUTHERN CHINA. THE PEARL RIVER DELTA IN GUANGDONG HAS EMERGED AS A DYNAMIC MANUFACTURING/PROCESSING BASE

FOR HONG KONG BUSINESSMEN.

GUANGDONG.

3.

HONG KONG IS NOW GUANGDONG'S LARGEST TRADING PARTNER, ACCOUNTING FOR 76 PERCENT OF ITS TOTAL EXTERNAL TRADE OF US

DOLLARS 13 BILLION IN 1989. IN 1990, ABOUT 80 PERCENT OF GUANGDONG'S EXPORTS (US DOLLARS 10.4 BILLION) AND IMPORTS (US DOLLARS 5.7 BILLION) WENT THROUGH HONG KONG.

FUJIAN.

4. HONG KONG IS FUJIAN'S LARGEST TRADING PARTNER. IN 1990, FUJIAN'S EXPORTS AND IMPORTS ROSE TO US DOLLARS 2.4 BILLION AND US DOLLARS 1.9 BILLION RESPECTIVELY. HONG KONG ACCOUNTED FOR 50 PERCENT OF FUJIAN'S TOTAL EXTERNAL TRADE.

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