ENG-1954 — Page 68

Indonesia

HONG KONG ANNUAL REPORT, 1954

Compared with 1953, exports to Indonesia were again substantially reduced, maintaining the down- ward trend which began in 1952. In 1952 Indonesia was Hong Kong's second most important entrepot customer, but in 1953 took only third place. However, Indonesia remained the best buyer of Hong Kong produce and purchased more than $154 million worth of goods during the year.

Japan

An agreement between the Japanese and United Kingdom Governments signed in London in January, 1954, resulted in the removal of restrictions on the export of goods of Japanese origin to the Sterling Area and permitted unrestricted import into Hong Kong and re-export to any destination, except for strategic goods. Although the value of imports from Japan showed an increase over 1953, exports decreased considerably. The main items showing an increase in imports were wool, cotton and rayon yarns.

South Korea

One of the most interesting developments during the year was the increase in the value of exports to South Korea by $117 millions. Among the exports of local manufacture were ten fishing trawlers, built to the specifications of the United Nations Korea Reconstruction Agency.

China (Mainland)

The United Nations ban on the export of strategic materials remained in force throughout the year. In spite of the financial loss which these

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