ENG-1961 — Page 103

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INDUSTRY AND TRADE

Imports of raw materials and semi-finished manufactures for use by the Colony's industries are of considerable importance. The principal items were textile fibres and yarns, base metals and chemicals.

The sources of imports are determined by proximity, price, speed of delivery and by traditional trade channels. From China, which is the Colony's principal supplier, came 17% by value of all imports and 31% of all the Colony's food imports. Other imports from that country in 1961 included textile yarn, fabrics and made- up articles. The value of goods imported from China fell by 13% compared with 1960. Imports from Japan, the second largest supplier, also showed a decline in value compared with 1960, mainly as a result of a fall in the value of imports of textile goods, although these still represent 34% of all imports of these articles. Other imports from Japan included machinery, base metals, food, wool tops and soyabean oil. Imports from other major suppliers showed an increase and these included Britain and the United States of America. Imports from Britain rose by 14% during the year and consisted mainly of machinery, textiles, transport equip- ment and base metals. From the United States, the principal imports were raw cotton, tobacco, plastic moulding materials, medicinal and pharmaceutical products and machinery. The chief continental area of supply was Asia from which came 47% of all imports by value.

The value of domestic exports reached the record total of $2,939 million in 1961, an increase of two per cent over the previous year and representing nearly 75% of total exports by value. Exports con- centrated heavily on the products of the textile and garment manu- facturing industries which accounted for 52% by value in 1961. Exports of the Hong Kong's second largest industry, the manu- facture of plastic goods, made up a further 11%. The balance consisted of a wide range of light industrial products.

The direction of the export trade is influenced by many factors, among the more important of which are the advantages of Com- monwealth Preference and the acceptability of 'low cost' imports in fully developed countries. The volume depends in many cases upon the extent to which trade promotion activities and negotiation can find new outlets and overcome such barriers as exchange controls, quota restrictions and tariffs.