ENG-1991 — Page 114

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INDUSTRY AND TRADE

The corporation's estates are held under leases from the Hong Kong Government. In accordance with the Sino-British Joint Declaration, the leases have been extended from 1997 to 2047. The corporation is now extending the term of the sub-leases to over 110 companies on the two estates case by case. All new sub-leases are granted up to 2047. This should enable investors to plan up to the middle of the next century with certainty.

External Trade

Hong Kong is among the top 11 traders in the world. Overall, its trade is normally in balance and in 1991 it showed a deficit. Its largest trading partner is China, followed by the United States and Japan. Its external trade was generally buoyant in 1991. Total merchandise trade amounted to $1,544,868 million, an increase of 20 per cent over 1990. Imports rose by 21 per cent to $778,982 million and re-exports by 29 per cent to $534,841 million while domestic exports increased by two per cent to $231,045 million. Domestic exports and re-exports together, valued at $765,886 million, registered an increase of 20 per cent.

Appendices 15 and 16 provide summary statistics of external trade.

Imports

Hong Kong is almost entirely dependent on imported resources to meet the needs of its population of 5.82 million and its diverse industries. In 1991, imports of consumer goods, valued at $304,668 million, constituted 39 per cent of total imports. The major consumer goods imported were: clothing ($68,218 million); radios, television receivers, gramophones, records, amplifiers and tape recorders ($38,105 million); baby carriages, toys, games and sporting goods ($22,410 million), footwear ($20,768 million) and travel goods, handbags and similar containers ($15,280 million).

Imports of raw materials and semi-manufactured goods totalled $297,276 million, representing 38 per cent of total imports. The principal items imported were transistors, diodes, semi-conductors and integrated circuits ($35,122 million); fabrics of man-made fibres ($32,860 million); plastic moulding materials ($26,419 million); watch and clock movements, cases and parts ($14,761 million); iron and steel ($14,293 million) and woven cotton fabrics ($13,599 million).

Imports of capital goods amounted to $120,465 million or 15 per cent of total imports. Imported capital goods consisted mainly of electrical machinery ($20,745 million), transport equipment ($12,344 million), office machines ($12,067 million), electronic components and parts of computers ($10,570 million) as well as parts for electric power machinery ($5,594 million).

Imports of foodstuffs were valued at $41,271 million, representing five per cent of total imports. The principal imported food items were fish and fish preparations ($9,259 million), fruit ($5,999 million), meat and meat preparations ($5,036 million) and vegetables ($4,325 million).

Mineral fuels, lubricants and related materials, worth some $15,302 million were imported in 1991, representing two per cent of total imports.

China and Japan were principal suppliers of imports, providing 38 per cent and 16 per cent respectively of the total. China alone supplied 34 per cent of Hong Kong's imported foodstuffs. Taiwan ranked third, providing 10 per cent, followed by the United States, the Republic of Korea, Singapore, Germany and the United Kingdom.