TNAG-2977-FCO40-1469-Economic-policy-in-Hong-Kong-1982 — Page 113

made up entirely of an

an increase of 12% in prices. There was

zero growth in real terms, compared with a growth rate of 19%

in real terms in the second half of 1981. Exports of the two

main items to this market, clothing (accounting for about 37%

of total domestic exports to the U.S.) and electronic components (accounting for 6%), decreased in the first half of

the year. A new textile agreement was reached with the U.S.

in March, with quota restraints on certain less important categories of textiles and garment exports being removed. The

rate of utilization of quota for textiles and clothing under

the new agreement is estimated at 46% at the end of June,

which is at the same level as that for the same product categories under the old agreement as at the end of June 1981.

2.4

The value of domestic exports to the United Kingdom, at $3,180 million, in the first half of 1982 was 6% lower than

in the first half of 1981. After discounting for the effects

of an increase of 8% in prices, there was a decrease of 13% in

real terms. The main reason for the decline was the

continuing unfavourable conditions in the U.K. economy. Also

contributing was the effect of the appreciation of the Hong Kong dollar against sterling. Neglecting, for

for convenience,

the time lags involved, the appreciation amounted to 5.1% during the twelve months ending June 1982. Among the major categories of products, domestic exports of textile fabrics

increased in real terms. But this was more than offset by a

decline in domestic exports of clothing, which accounted for about 48% of total domestic exports to this market, by 12% in

real terms and of watches by 4%. The rate of utilization of quota for textiles and clothing as a whole was 36% at the end of June, compared with 41% at the end of June 1981.

2.5

At $3,075 million, the value of domestic exports to

the Federal Republic of Germany in the first half

half of 1982

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