ENG-1976 — Page 40

INDUSTRY AND TRADE

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the Trade Development Council and the Hong Kong General Chamber of Commerce in their overseas promotion of industrial investment in Hong Kong. The committee's objective is to obtain the maximum possible benefit from the combined resources and joint efforts of the three groups. Their industrial investment promotion activities in 1976 included missions to Switzerland and the Federal Republic of Germany, and a series of missions to Australia, Japan and the United States. The American Chamber of Commerce in Hong Kong took part in the latter mission and helped to establish contacts between the Hong Kong representatives and American companies and in- dustrial organisations.

At the end of the year there were at least 311 factories in Hong Kong either fully or partly owned by overseas interests-nearly 15 per cent more than in 1975. The total direct investment involved was about $1,952 million. The main sources of investment are the United States, Japan, Britain, Thailand, Australia and Singapore. The prin- cipal industries involved are electronics and textiles although there are new invest- ments in fields such as light and medium_engineering industries.

External Trade

Hong Kong reacted swiftly to the recovery of demand in its major overseas markets and the general upturn in world trade in 1976. Total merchandise trade reached a record level of $84,849 million, an increase of 34 per cent over 1975. Imports increased by 29 per cent to $43,293 million; domestic exports by 43 per cent to $32,629 million; and re-exports by 28 per cent to $8,928 million. Summary statistics of external trade, including a breakdown by countries and commodities and comparisons with previous years, are contained in Appendices 3 and 4.

Hong Kong is almost entirely dependent on imported resources to meet the needs of its 4.4 million people and the requirements of its diverse industries. Imports of food and live animals at $6,687 million represented 15 per cent of total imports in 1976; machinery and transport equipment at $7,701 million, 18 per cent; textile yarn, fabrics, made-up articles and related products at $6,632 million, 15 per cent; chemicals at $3,419 million, eight per cent; mineral fuels, lubricants and related materials at $2,680 million, six per cent; professional, scientific and controlling instru- ments, photographic and optical goods, watches and clocks at $2,353 million, five per cent; and textile fibres at $1,976 million, five per cent. Other significant imports were diamonds, iron and steel, paper and paperboard and their manufactures, beverages and tobacco, clothing, non-ferrous metals, and animal and vegetable oils and fats.

Japan continued to be the principal supplier of imports in 1976, providing 22 per cent of the total. China came second, supplying 18 per cent of total imports and 49 per cent of all imported food and live animals. The United States supplied 12 per cent of total imports and other important sources were Singapore, Taiwan, Britain, West Germany, Switzerland and South Korea.

Domestic exports consisted almost entirely of manufactured goods, emphasising the importance of the manufacturing sector in Hong Kong. Although substantial diver- sification has taken place into new production lines such as electronic calculators

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