ENG-1967 — Page 86

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INDUSTRY AND TRADE

inclusive. Other items imported from China included textile fabrics, cement, paper, clothing and base metals most of which showed a decline. Imports from Japan, the second largest supplier, accounted for 19 per cent of imports from all sources. Of imports from Japan 34 per cent were textile yarn and fabrics; the rest were made-up of base metals, electric apparatus and appliances, chemicals and miscellaneous manufactured articles. Imports from the United States registered an increase of $321 million or 29 per cent. The principal imports from the United States were raw cotton, tobacco, machinery, fruits, plastic materials and medicinal and pharmaceutical products. Imports from the United Kingdom showed a slight increase and were mainly machinery, motor vehicles and textile fabrics. The new valuation of the Hong Kong dollar, in November, is not likely to alter this basic pattern.

The value of domestic exports reached a total of $6,700 million, an increase of 17 per cent over the previous year. Products of the textile and garment manufacturing industries accounted for 49 per cent by value, and miscellaneous manufactured articles, mainly plastic goods and wigs, made up a further 22 per cent. Other light industrial products such as electric apparatus and appliances, footwear, and manufactures of metals were also important 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 54 per cent of all domestic exports by value went to two markets-the United States and the United Kingdom, in a ratio roughly of two to one. The United States, remaining the largest market, took 37 per cent by value and increased her purchases by $468 million or 23 per cent. The value of all goods sent to the United Kingdom was $1,147 million, 16 per cent of all domestic exports. The Federal Republic of Germany, which remained the third largest market, purchased Hong Kong manufactures worth $371 million during the year. Other growing markets of importance included Canada, Japan and Australia, 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 1967 totalled $2,081 million, an increase