ENG-1972 — Page 37

INDUSTRY AND TRADE

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Development plans for Tsing Yi Island, Kowloon Bay, Chai Wan, Aberdeen and Ap Lei Chau are also in hand. Development at Tsing Yi, which has been des- ignated for heavy industry, will be greatly facilitated by the Tsing Yi Bridge (link- ing the island with Kwai Chung) which is due for completion towards the end of 1973. Reclamation at Kowloon Bay will also provide more land for industry, but development in this area is subject to height restrictions due to the proximity of Kai Tak International Airport.

External Trade

External trade expanded less rapidly in 1972 compared with previous years due to increases of only 7 per cent in imports and 11 per cent in domestic exports. Summary trade statistics, including a breakdown by countries and commodities and compari- sons with the previous year are contained in Appendices 3 and 4.

Hong Kong continued to rely heavily on imports to meet the needs of its 4.1 million people and the extensive requirements of its diverse industries. In 1972, imports were valued at $21,764 million, an increase of $1,508 million over the pre- vious year. Although domestic supplies of agricultural produce and fish were sub- stantial, the ever-increasing consumption of food had to be met from imports. Food accounted for 17 per cent of all imports and consisted mainly of fruit and vegetables, live animals, rice and other cereal, fish and fish preparations, meat and meat prepa- rations and dairy products and eggs. Imports of raw materials and semi-manufact- ured goods for industry included textile fibres, yarn and fabrics, base metals, plastic moulding materials, and paper and paper board. Capital goods imported consisted largely of machinery and transport equipment, while consumer goods and mineral fuels were also imported in large quantities.

The sources of imports are determined by proximity, prices, speed of delivery and traditional trade relationships. Japan continued to be the principal supplier in 1972, providing 23 per cent of all imports. Imports from China, the second largest supplier, accounted for 18 per cent of imports from all sources and 49 per cent of all food imports. Imports from the United States represented 12 per cent of all imports. Other important sources of imports were Britain, Taiwan, the Federal Republic of Germany, Singapore, Switzerland, Pakistan and Australia.

In 1972, domestic exports rose by $1,495 million to reach a value of $15,245 million, and consisted almost entirely of manufactured goods. The principal exports were textiles and clothing which accounted for 50 per cent of overall exports, but sales of miscellaneous manufactured articles, mainly plastic toys and dolls, artificial flowers, jewellery and goldsmiths' and silversmiths' wares, and wigs made up a further 19 per cent. Other light industrial products such as transistorised radios and elec- tronic components, metal manufactures, footwear, travel goods, and watches and clocks were also important exports.

The direction of Hong Kong's export trade is nowadays influenced less by such factors as tariff preference in Commonwealth markets than by economic conditions and commercial policies in principal markets. In 1972, 65 per cent of all domestic