ENG-1960 — Page 102

INDUSTRY AND TRADE

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Other imports from Japan included machinery, food, wool tops, soya bean oil, and base metals.

The United States sent mainly raw cotton, machinery, tobacco, and plastics moulding materials, while the United Kingdom exported mainly transport equipment, base metals, machinery and textiles to the Colony. The chief continental area of supply was Asia from which came 49% of all imports by value.

The Colony's domestic exports rose to $2,867 million in 1960, an increase of 28% over 1959, and represented 70% of total exports by value. Domestic exports concentrated heavily in cloth- ing and textiles, these two accounting together for 55% by value. Miscellaneous manufactured goods, especially artificial flowers and toys and dolls, made up a further 14%. The remainder was spread over a wide variety of light industrial products.

Directions of export trade are influenced by many factors, amongst these the advantages of Commonwealth in many markets and the demands of the highly industrialized nations. Volume may depend in many cases upon the extent to which trade promotion activities and negotiations can find new outlets and overcome the barriers of exchange controls, quota restrictions and tariffs.

The United States, as in 1959, proved to be the most valuable market and in 1960 took $745 million of goods-a rise of 39% compared with the previous year. Clothing was the most important item-53% by value. Since the Colony's imports from the United States totalled $720 million the trade between Hong Kong and USA is approximately in balance. Following the USA were the United Kingdom, Malaya, Western Germany and Japan, and then, in varying small amounts, practically every other country in the world. The British Commonwealth took in all 40% of domestic exports by value, and the whole of the American Continent 30%.

The main part of the Colony's re-export trade (some 30% of total exports) is now the exchange through Hong Kong of products of one Asian country with another. The products of China, Japan, Malaya, Taiwan, Thailand and Indonesia are exchanged among each other, and in 1960 60% of all re-exports were directed to Asian countries (excluding Malaya). Some re-export took place of Western European goods to countries in Asia and the southern hemisphere, but it was not of a high proportionate value. The