but the shortage of home-grown produce means that there is a strong market for imported food, drink, and expertise in food processing, fisheries, etc. Although the UK is at a competitive disadvantage, by reason of distance and high freight costs, in the supply of some foodstuffs, our agri-food exports to Hong Kong are already important (about £160 million a year). I felt that there was scope for increasing our exports in this sector, and I am taking this up with the relevant people in the industry.
While in Hong Kong, I went into southern China, specifically the Shenzhen Special Economic Zone bordering Hong Kong. The Hong Kong influence was very plain to see. The Zone is a rapidly developing area of modern buildings, fuelled by investment from Hong Kong. The main industry is electronics, but agriculture is also very important. Its population has grown from 300,000 to 2 million in the last 10 years and, aided by low labour costs and ample land availability, it is developing closer trading links with Hong Kong. There is clearly scope for further growth, on the Hong Kong model. I toured a biscuit factory, in United Biscuits have a 90% stake, which was more-or-less up to Western standards and a model of what could be achieved by sound British investment and good British management. There should be some good opportunities for British companies to take a stake in this successful and growing Zone.
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Finally, I am indebted to Sir Robin McLaren and his staff for the excellent way in which they organised my Chinese programme, and for the kind and thoughtful way. that they looked after me while in Beijing. Equally my sincere thanks go to Sir David Wilson and Peter Heap, and their respective staffs, for the excellent treatment I received in Hong Kong.
I am copying this letter to Peter Lilley, and to Sir Robin McLaren in Beijing and Peter Heap in Hong Kong.
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JOHN CUMMER
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