TNAG-2527-FCO40-3696-Hong-Kong-China-Relations-Committee-1992 — Page 145

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

CONFIDENTIAL

6

15.

Nearly all the manufacturing establishments interviewed

have technicians or managers stationed in China to look after

the production there.

(c) Practices of trading firms

16.

Most of the trading firms

interviewed

source their

ОР goods from local manufacturers who are engaged in ОР

activities. A few source from their own processing plants in

China, Some of the trading firms visited, which are of Japan

or Taiwan interest, are "buying offices". to source goods for

their parent companies. The setting up of these trading firms

in Hong Kong is to do OP business. In other words, China has

become one of their parent companies' targets in diversifying their production base, taking the advantage of

of China's cheap

production costs and proximity to their head offices.

(a) Need for exporting/re-exporting OP goods through Hong Kong

17.

Most

/

manufacturing

consider that the

establishments/trading

firms

present need for exporting/re-

interviewed

exporting OP goods through Hong Kong will continue in the years ahead as the port facilities in China cannot catch up with that

in Hong Kong.

(e) Problems encountered in OP

18.

Although OP

OP results in low production costs, there are complaints by the manufacturing establishments/firms engaged in OP activities in China in the following aspects :

CONFIDENTIAL

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