ENG-1964 — Page 66

INDUSTRY AND TRADE

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concentrated heavily on the products of the textile and garment manufacturing industries to the extent of 52 per cent by value. Exports of plastic goods made up a further 13.8 per cent.

The direction of Hong Kong's export trade is influenced by such factors as the advantages of preference in Britain and several smaller Commonwealth markets. There is at the same time a trend towards outlets in more developed countries as protectionist measures in the other traditional markets in Asia and Africa became more wide-ranging or are intensified. During the year 49 per cent of all domestic exports went to two markets, the United States and Britain, in roughly equal proportions. The United States remains the largest market, taking 27 per cent by value, and in- creasing her purchases by 254 million, or 26 per cent. The value of goods sent to Britain was $968 million (22 per cent of all domestic exports) an increase of $105 million or, 12 per cent. A market of increasing importance was West Germany to which, largely as a result of exports of woollen knitwear, goods worth $294 million were sent during the year. Malaysia remained, however, the third largest market for Hong Kong goods, taking $330 million, although this total seems likely to decline in future. Other important markets were Japan, Canada and Australia, but domestic exports were also sent to practically every country in the world.

The entrepôt trade is still considerable. The value of re-exports totalled $1,513 million in 1964, an increase of 30 per cent over the previous year. Malaysia remains the leading customer but Indonesia showed a sharp temporary increase in purchases during the year to take second place, followed by Japan and China. The principal commodities in this trade were gems and jewellery, textile, medicinal and pharmaceutical products, sugar and sugar preparations.

RESTRICTIONS ON TRADE

Hong Kong faces increasing obstacles to the free flow of its exports. The most important was the British Government's deci- sion in October to impose a 15 per cent surcharge on all imports, except foodstuffs and raw materials. It will take time for the effects to show in Hong Kong but in principle this action affects over 99 per cent of the Colony's exports to a market which takes some