ENG-1966 — Page 86

INDUSTRY AND TRADE

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The value of domestic exports reached a total of $5,730 million, an increase of 14 per cent over the previous year. Products of the textile and garment manufacturing industries accounted for 52 per cent by value, and miscellaneous manufactured articles, mainly plastic goods, made up a further 19 per cent. Other light industrial products such as electric apparatus and appliances, footwear, and manufactures of metals were also important categories of exports.

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, and economic conditions and commercial policies in overseas markets. During the year 53 per cent of all domestic exports by value went to two markets—the United States and the United Kingdom-in a ratio of roughly two to one. The United States, remaining the largest market, took 36 per cent by value and increased her purchases by $317 million or 18 per cent. The value of goods sent to the United Kingdom was $987 million, 17 per cent of all domestic exports and an increase of $127 million or 15 per cent. The Federal Republic of Germany, which remained the third largest market, purchased Hong Kong manufactures worth $420 million during the year. Other grow- ing markets of importance included Canada, Japan, and the Netherlands, but domestic exports now go to practically every country in the world.

The entrepôt trade has sustained its role in external commerce. The value of re-exports in 1966 totalled $1,833 million, an increase of 22 per cent over 1965. This was 24 per cent of the total combined value of exports of Hong Kong manufactures and re-exports of imported goods. Japan remained the leading customer. Indonesia, third in 1965, showed a marked increase and became the second most important re-export market. Singapore took third place, followed by the United States, Macau, and Taiwan. The principal commodities in the re-export trade were textiles, medicinal and pharmaceutical products, and animal and vegetable crude materials.

TRADE PROMOTION

The year saw the realization of long-term plans for three new measures to assist Hong Kong business to meet altered trading conditions and increasing competition. The report submitted by