TNAG-2913-FCO40-4188-International-support-from-the-USA-regarding-the-future-of-H-1993 — Page 26

TOTJU

A REPORT TO CONGRESS ON CONDITIONS IN HONG KONG

AS OF MARCH 31, 1993

AS REQUIRED BY SEC. 301 OF

THE UNITED STATES - HONG KONG POLICY ACT OF 1992

Sec. 301 REPORTING REQUIREMENT

Not later than March 31, 1993, March 31, 1995, March 31, 1997, March 31, 1998, March 31, 1999, and March 31, 2000, the

Secretary of State shall transmit to the Speaker of the House of Representatives and the Chairman of the Committee on Foreign Relations of the Senate a report on conditions in Hong Kong of interest to the United States.

(1) Significant Developments

Significant developments in United States relations with Hong Kong, including a description of agreements that have entered into force between the United States and Hong Kong.

(A) Economic & Commercial

Hong Kong is the 13th largest trading partner of the United States, with two-way trade exceeding $18 billion in 1992. American exports approached $9 billion in 1992 and averaged 20 percent annual growth during the period 1987-91. Hong Kong imposes no tariffs on imports except for duties on alcohol and some luxury goods, and has virtually no non-tariff barriers.

Hong Kong's major purchases from the United States include computers, telecommunications equipment, agricultural goods and food stuffs. It is the largest market in the world for American agricultural products on a per capita basis, and a major seller of textiles, toys, and consumer electronics.

U.S. and foreign firms are free to invest and set up businesses in Hong Kong with minimal government interference. U.S. direct investment in the territory is about $7 billion and is primarily concentrated in finance and trade. As the gateway to the booming south China region and southeast Asia, Hong Kong serves as the regional headquarters for over 250 American firms. The American Chamber of Commerce, with over 1000 U.S. and non-U.S. corporate members, is the largest business organization of its kind outside of the United States, The United States is the leading overseas supplier to the Hong Kong government for goods which are purchased according to the rules of the GATT government procurement code.

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