ENG-1970 — Page 70

INDUSTRY AND TRADE

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included Japan, Canada, Australia, Sweden and Singapore, but in fact domestic exports go to nearly every country in the world.

The entrepôt trade has sustained its role in external trade. The value of re-exports in 1970 totalled $2,892 million, an increase of eight per cent over 1969. This was 19 per cent of the total combined value of exports of Hong Kong manufactures and re-exports of imported goods. During 1970 Japan remained the most important re-export market, followed by Singapore, the United States, Indonesia, Taiwan and Belgium. The principal commodities in the re-export trade were diamonds, textile fabrics, medicinal and pharmaceutical products, coffee, tea and spices, crude animal and vegetable materials and watches. Re-exports of goods originating from China amounted to 24 per cent of all re-exports.

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INTERNATIONAL ECONOMIC RELATIONS

As the United Kingdom has acceded to the General Agreement on Tariffs and Trade on behalf of Hong Kong, the Colony's exports are given most-favoured-nation tariff treatment in the majority of its overseas markets and are thus accorded a degree of protection against discriminatory import restrictions by members of GATT. Nevertheless difficulties do occur from time to time, and the Com- merce and Industry Department is responsible for such action as is necessary and practicable at official levels to resolve them. During the year, Hong Kong made representations, on matters outside the trade in cotton textiles which is covered by the provisions of the GATT Cotton Textiles Arrangement, to the Governments of Algeria, Greece, France and the Republic of Ireland.

Britain's application to join the European Community, which had lain dormant since 1967, was resuscitated this year. The Government, in close collaboration with Hong Kong trade and industry, maintained a close watch on the progress of the negotia- tions which could have far-reaching implications for Hong Kong's external trade.

Close contact on this subject and related matters was maintained with Her Majesty's Government. A senior official from the British negotiating delegation in Brussels visited Hong Kong for discussions in August and this visit was followed in September by one from