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U.S. Department of State 
Hong Kong Country Commercial Guide for FY 95-96
Office of the Coordinator for Business Affairs 


                  Country Commercial Guide for FY 95-96
                           Hong Kong


                            TABLE OF CONTENTS

CHAPTER I.     EXECUTIVE SUMMARY
CHAPTER II.    ECONOMIC TRENDS AND OUTLOOK
CHAPTER III.   POLITICAL ENVIRONMENT
CHAPTER IV.    MARKETING U.S. PRODUCTS AND SERVICES
CHAPTER V.     LEADING SECTORS FOR U.S. EXPORTS AND INVESTMENT
CHAPTER VI.    TRADE REGULATIONS AND STANDARDS
CHAPTER VII.   INVESTMENT CLIMATE
CHAPTER VIII.  TRADE AND PROJECT FINANCING
CHAPTER IX.    BUSINESS TRAVEL
CHAPTER X.     APPENDICES
     APPENDIX A -- COUNTRY DATA
     APPENDIX B -- DOMESTIC ECONOMY
     APPENDIX C -- TRADE
     APPENDIX D -- INVESTMENT STATISTICS
     APPENDIX E -- U.S. AND COUNTRY CONTACTS
     APPENDIX F -- MARKET RESEARCH     
     APPENDIX G -- TRADE EVENT SCHEDULE


     This Country Commercial Guide (CCG) presents a comprehensive look 
at Hong Kong's commercial environment through economic, political and 
market analyses.

     The CCGs were established by recommendation of the Trade Promotion 
Coordinating Committee (TPCC), a multi-agency task force, to consolidate 
various reporting documents prepared for the U.S. business community.  
Country Commercial Guides are prepared annually at U.S. Embassies and 
Consulates through the combined efforts of several U.S. government 
agencies.

     Country Commercial Guides are available on the National Trade Data 
Bank on CD-ROM or through the Internet.  Please contact STAT-USA at 1-
800-STAT-USA for more information.  To locate country commercial guides 
via the Internet, please use the following World Wide Web address:  
WWW.STAT-USA.GOV.  CCGs can also be ordered in hard copy or on diskette 
from the National Technical Information Service (NTIS) at 1-800-553-
NTIS.



                       CHAPTER I.     EXECUTIVE SUMMARY

Hong Kong is a place U.S. business cannot afford to ignore.  Perhaps the 
world's best example of free enterprise, Hong Kong's dynamism, free-
market philosophy, entrepreneurial drive, absence of trade barriers, 
well established rule of law, low and predictable taxes, transparent 
regulations, and complete freedom of capital movement have made it one 
of the most desirable places for business.  U.S. exports to Hong Kong 
totaled US$11.5 billion in 1994.  According to U.S. statistics, two-way 
trade totaled US$21.2 billion, making Hong Kong the United States' 
thirteenth largest trading partner.  
     
     In 1994, the territory's open, services-dominated economy continued 
its trend growth rate of 5.5%.  Inflation was 8.5% and foreign currency 
reserves totaled US$49 billion, the world's seventh largest.  The Hong 
Kong dollar is linked to the U.S. dollar at a rate of HK$7.8 = US$1; as 
a result, Hong Kong interest rates tend to follow those in the U.S.  A 
track record of prudent fiscal management has enabled Hong Kong 
consistently to realize budget surpluses.

     The tremendous attractiveness of Hong Kong as a commercial and 
financial center has pushed up property and rental costs, and kept the 
labor market tight.  Recent data indicate those pressures have 
moderated, although rental costs remain among the world's highest.  
Demand has stretched Hong Kong's modern air and port facilities to 
capacity.  Hong Kong boasts the world's busiest container port and the 
third-busiest airport.  The government and private sector plan to spend 
some US$44.9 billion over the next decade to upgrade transportation 
links and environmental facilities.  A centerpiece is the US$21 billion 
Chek Lap Kok airport and related airport core projects.  The airport is 
now expected to be operational in April 1998.  

     On July 1, 1997, Hong Kong will revert to Chinese sovereignty after 
over 150 years under British rule.  The Sino-British Joint Declaration, 
signed in 1984, and the Basic Law, passed by China's National People's 
Congress in 1990, form the legal basis for China's "One Country, Two 
Systems" guarantees for Hong Kong when it becomes a "Special 
Administrative Region" (SAR) of China in 1997.  These documents 
guarantee a high degree of autonomy for the HKSAR except in matters 
relating to foreign affairs and defense.  Beijing has pledged that the 
social and economic systems, life-style, and rights and freedoms that 
Hong Kong people now enjoy will remain unchanged for 50 years.  The 
HKSAR will also enjoy executive, legislative and independent judicial 
power.

     Around 1000 U.S. companies maintain offices in the territory and 
34,000 Americans reside there.  U.S. direct investment in Hong Kong 
totaled US$12 billion at year-end 1994, making the United States one of 
Hong Kong's largest investors, along with China and Japan.  Over 80 of 
the world's top 100 banks have operations in Hong Kong; and more than 40 
U.S. financial institutions have offices in the territory. 
     
     Geographic proximity and cultural and linguistic ties, particularly 
to adjacent Guangdong province, have greatly accelerated Hong Kong's 
economic integration with China.  Trade and investment with the PRC have 
surged as China's economy continues its fast-track growth.  China is 
Hong Kong's largest trading partner; the PRC absorbs one-third of the 
territory's total exports of US$151 billion.  Hong Kong serves as the 
principal transshipment point for Chinese exports.  An estimated two-
thirds of cumulative foreign investment in China is from Hong Kong; some 
4 million PRC workers are employed by Hong Kong-invested enterprises in 
Guangdong alone.

     With a per-capita GDP of US$21,750, Hong Kong's sophisticated, 
bilingual consumer population offers outstanding opportunities for sales 
of a full range of U.S. products and services.  The government's ongoing 
heavy investment in infrastructure provides abundant prospects for 
export of construction services and equipment, telecommunications 
services and equipment, electric power systems, and environmental 
services and equipment.  Medical equipment and pharmaceuticals, aircraft 
and parts, scientific and analytical equipment, computers and computer 
software, and electronic components also offer outstanding opportunities 
for U.S. exporters, as do such other sectors as consumer goods, 
financial and other services, and agricultural products.  



                 CHAPTER II.     ECONOMIC TRENDS AND OUTLOOK

A.     Major Trends and Outlook

     Hong Kong's real GDP increased by 5.5% in 1994, to reach US$131.8 
billion, in line with government projections.  GDP per capita reached 
US$21,750.  GDP increased by 6% in the first quarter of 1995, bolstered 
by strong exports and spending on infrastructure.  However, retail sales 
have been flat as consumers belt-tightened in response to last year's 
rising interest rates and declining equity and property prices. The Hong 
Kong Government projects GDP in 1995 will grow by 5.5%.  The government 
projects a small (US$333 million) deficit for the current fiscal year 
(4/1/95-3/31/96) against a surplus of US$984 million realized in 1994.  

     Unemployment, which was a seasonally adjusted 1.9% of the labor 
force in 1994, increased to a nine-year high of 3% in April 1995. The 
increase in the number of jobless has been attributed primarily to a 
slowdown in the retail and  restaurant sectors against the backdrop of a 
continuing shift of manufacturing to China.  Inflation in 1994 was 8.1%.  
For the twelve months ended May 1995, the inflation rate was 8.9%.  

     Hong Kong's merchandise, or visible, trade deficit increased three-
fold in 1994 to US$10.9 billion as imports surged while exports 
maintained essentially steady growth.  Substantial surpluses on services 
trade have traditionally more than offset merchandise trade deficits.  
In 1994, the combined overall trade surplus was only US$2.4 billion, or 
1.3% of the value of goods and services, marking the lowest overall 
trade surplus since 1983.

     Total exports grew by 10%.  Re-exports, which account for 80% of 
the territory's total exports, increased 14%.  (Goods made in foreign 
countries, principally China, which officially enter Hong Kong's customs 
territory for shipment onward to other countries are classified as re-
exports.)  In the first quarter of 1995, Hong Kong's total exports 
jumped 18% over the year earlier figure as demand revived in Hong Kong's 
major markets.  Domestic exports also surged as the declining U.S. 
dollar enhanced Hong Kong's export competitiveness.  China is Hong 
Kong's principal export market, followed by the United States, Japan, 
Germany and the U.K.
     
     Total imports grew by 14% in 1994 to reach US$162 billion.  
Retained imports -- those not shipped onward to China or elsewhere -- 
grew by a similar rate. Total imports in the first quarter of 1995 
jumped 22% over the year earlier figure to reach US$42.2 billion.  The 
growth reflected the surge in raw materials and equipment needed for 
growing exports and an increase in retained imports of capital goods and 
materials for infrastructure and building projects.  China is the 
largest supplier of imports, followed by Japan, Taiwan, and the United 
States.  
          
     Since 1983, the Hong Kong dollar has been linked to the U.S. dollar 
at a rate of HK$7.8 = US$1.  The link, which authorities instituted to 
ensure exchange rate stability vis-a-vis the U.S. dollar, requires local 
interest rates to generally track those in the United States.  As the 
U.S. dollar has weakened against the yen and deutschmark, this has 
increased the competitiveness of Hong Kong's domestic exports to those 
economies, while correspondingly raising the cost of imports from those 
countries, other things being equal.  It will also increase the 
competitiveness of U.S. products vis-a-vis Germany and Japan, and should 
create additional opportunities to expand U.S. exports to Hong Kong, 
which totaled US$11.5 billion in 1994.

B.     Principal Growth Sectors

     Services dominate.  Hong Kong's economy is services-dominated, 
accounting for some 80% of GDP and employing over 70% of the work force.  
Services represent some 50% of total domestic exports, twice the level 
of a decade ago.  Between 1984 and 1994 exports of services grew at an 
average annual rate of 8% in real terms, while services imports 
increased at 11%.  Major sectors include travel/tourism, transportation, 
trading and financial services.  Finance, insurance, real estate and 
business services contributed 26% of GDP in 1993, up from 20% in 1990.  
See VII (O) for a discussion of the banking/financial services sector. 

     Manufacturing continues to decline.  Manufacturing now accounts for 
only about 11% of GDP and 20% of the work force, down from 28% in 1990.  
The textile and clothing/apparel industries remain the backbone of Hong 
Kong's manufacturing sector.  These industries employ 39% of the work 
force and accounted for 39%, or US$11.4 billion of Hong Kong's 1994 
domestic exports.  Other principal manufactures include electronics, 
watches and clocks and chemical and industrial machinery.  Manufacturers 
continue to shift production facilities primarily to China to take 
advantage of lower labor and land costs. 

(1)      Tourism and Retail Sales

     Tourism is Hong Kong's largest earner of foreign exchange after the 
textile and apparel industries.  Tourism provided revenues of US$8.3 
billion during 1994, up 7.1% from the year earlier.  Visitor arrivals 
exceeded 9.3 million in 1994, up 4.4% compared with 1993.  Visitor 
arrivals from China accounted for 20.4% of the territory's total 
arrivals followed by Taiwan with 17.3%, Japan at 15.4%, Southeast Asia 
with 12.8%, and Western Europe with 12.1%.  Visitors from the U.S. 
increased 8% to 776,000.  Hotel room occupancy rates nudged down two 
percentage points to 85% in 1994, and fell to 75% in April 1995 due to 
higher room rates. 

     Retail sales grew by 12% in 1994.  Those sectors which enjoyed 
strong growth included clothing and footwear, up 36%, and jewelry, 
watches and gifts, up 13%.  Car sales, though, have been quite 
lethargic, slumping 4% in 1994.  Tourism revenues as well as retail 
sales were both sluggish in the first quarter of 1995 registering a 
meager 0.5% growth. 

(2)     Property

     Hong Kong's property market has cooled from the sizzling levels 
attained in mid-1994 that earned it dubious distinction as the world's 
most expensive business location.  Residential property prices have 
declined by more than 20% from their peak levels of April 1994.  A 
combination of government administrative measures, rising interest 
rates, and the negative wealth effect of declining equity prices during 
1994 took the steam out of relentlessly advancing private and commercial 
property prices.  A series of measures the Hong Kong Government 
introduced in June 1994, which remain in place, have curbed property 
market speculation.  They are also designed to increase new home supply 
through accelerated construction, fast-tracking major housing projects 
and releasing more land for building.

     As of June 1995, monthly rental prices for Grade A office space in 
Central and Wan Chai North, two of the most popular commercial districts 
for multinationals on Hong Kong Island, had fallen by 10.5% and 23% 
respectively since their August 1994 peak.  Office space, however, still 
is expensive by regional standards.  While office space in Central now 
fetches on average US$9.60 per square foot (p.s.f.) per month, similar 
accommodations at Wan Chai North will cost an average US$6.20 p.s.f.  
Across the Harbor in Kowloon, prime office space is available for 
US$4.50 to 5.20 p.s.f.  According to local property agents, Grade A 
office rents in all three areas are projected to fall downwards of 30% 
by 1996 as an increased supply of Grade A office space becomes available 
outside Central.

     Adding to the downward pressure on office rents is the fact that 
increasing numbers of companies, which are trying to cut overhead costs, 
are moving away from the prohibitively expensive, high occupancy Central 
business district to outlying areas where rents are lower.  Finally, 
tenants are becoming more and more resistant to high rents.  Given this 
trend, landlords in Central and Wan Chai North are either lengthening 
the rental-free periods or simply lowering their rental premiums on 
their three year leases in order to prevent the further exodus of 
tenants. 
     
     Prices in the residential property market this year moved in 
parallel to prices on office space.  As of June 1995, rents on new 
luxury flats, that is units over 1000 square feet with some added 
amenities, had dropped 30% since their July 1994 peak, while prices for 
existing flats fell 22.5%. In May alone, rental prices fell 10%.  
Monthly rentals for luxury units on the Peak, in Wan Chai, and the 
South-side of Hong Kong Island, the three most popular living quarters 
for expatriates, averaged US$4.77, $3.40, and between $2.70-$5.00 p.s.f. 
in that order.  Because there is presently an "oversupply" of luxury 
units -- many flat owners have put their properties up for lease -- it 
is now a "tenants market" and rental prices are quite negotiable. 

(3)      Infrastructure (Construction, telecommunications, environmental

     See II.e below for a discussion of these sectors

     
C.     Government Role in the Economy

     The Hong Kong Government pursues a generally non-interventionist 
approach to economic policy that stresses limited government 
interference and the predominant role of the private sector.  However, 
public housing, land sales, and infrastructure development are areas in 
which the government does play an active role. 

     Hong Kong has consistently supported an open multilateral trading 
system.  The Government was a firm proponent of the recent Uruguay Round 
of trade talks in the GATT and looks forward to participating in the new 
World Trade Organization.  Hong Kong maintains no anti-dumping laws, 
countervailing duty laws, import quotas or tariffs.  It urges similar 
open trade policies on its neighbors and trading partners.

     The tax system in Hong Kong is simple and tax rates are low.  No 
one pays more than 15% of their income in salaries tax.  As a result of 
generous allowances under the law, almost half the work force pays no 
salaries tax.  The business profits tax is 16.5%.  It is payable only on 
net profits arising in Hong Kong or derived from business carried on in 
Hong Kong.  There are no taxes on capital gains, dividends, or interest.  
Other revenue sources include stamp duty on property and stock market 
transactions, betting duties and estate duty and hotel accommodation 
tax.  The Hong Kong Government's low taxes and prudent fiscal policy 
have enabled it consistently to achieve surpluses on its consolidated 
account over the past decade.

     Hong Kong Government-funded core projects including those related 
to Chek Lap Kok replacement airport and environmental protection have 
further fueled the development of Hong Kong's economy.  Although the 
Hong Kong Government is spending heavily on projects of this nature, the 
financial structure is fit.  In the 1994 fiscal year which ended March 
31, 1995, government expenditure accounted for about 16.8% of GDP.  
Government expenditure has never exceeded 20% of GDP.  Prudent fiscal 
management and strong reserves have obviated the need for the Hong Kong 
Government to incur debt to finance expenditures.  


D.     Balance of Payments Situation

     As indicated in II(A), Hong Kong's visible trade deficit widened 
significantly during 1994.  This trend has continued in 1995 as imports 
have surged, albeit against the backdrop of a strong growth in exports 
as Hong Kong's terms of trade have improved.  The invisible, or 
services, trade balance, has continued to be sufficiently positive  to 
offset the merchandise trade deficit.  In 1994, the surplus on invisible 
trade totaled US$13.3 billion against a merchandise trade deficit of 
US$10.9 billion.  The overall trade surplus represented approximately 
1.5% of total imports.  If current trends continue, it is possible that 
Hong Kong will experience a current account deficit in 1995.  That said, 
the fixed capital formation related to the new airport and other major 
infrastructure projects will significantly boost Hong Kong's 
competitiveness and generate longer-term earnings from investment, 
trade, tourism, and other services. 

     Hong Kong does not track capital flows from foreign investments.  
However, net capital inflows from transfers, foreign direct investment 
and investment income increased foreign currency reserves in the 
Exchange Fund by HK$49 billion (US$6.3 billion).  At year-end 1993, 
foreign currency reserves stood at US$49.2 billion, giving Hong Kong the 
world's seventh-largest foreign exchange reserves.  

     
E.      Infrastructure Situation
     
     Hong Kong's well-developed, modern, and efficient infrastructure 
has supported the territory's leading role as a trade entrepot and 
regional financial and services center.  However, rapid growth has 
placed severe demands on that infrastructure, particularly 
transportation and shipping facilities.

     Public- and private-sector spending on major infrastructure is 
projected to exceed US$45 billion over the next decade.  The centerpiece 
is the new Chek Lap Kok airport.  Other significant projects include a 
planned expansion of container terminal facilities, bridges, railways, 
sewage facilities, telecommunications and power stations.
     
     New Airport Core Program

     Hong Kong's single-runway airport, Kai Tak, is second in the world 
in terms of cargo handled (behind Tokyo's Narita) and third in terms of 
international passengers.  1.25 million tons of cargo and 19.9 million 
passengers passed through the airport in 1994.  
     
     The Hong Kong Government announced in 1989 plans to build Chek Lap 
Kok, a completely new international airport on the north shore of Lantau 
Island.  Besides Chek Lap Kok, the airport core program includes nine 
additional integrated projects.  Among these are a railway link, one of 
the world's longest suspension bridges, a third cross-harbor tunnel, new 
roads, land reclamation, and a new town adjacent to the airport.

     After protracted negotiations over several years, The U.K. and 
China agreed in November 1994 on overall financing arrangements for the 
airport and connecting railway.  In late June 1995, the two sides 
finalized terms for financial support agreements for the projects, thus 
removing the last significant obstacle to full funding for the 
megaproject.  However, because of the delay in reaching agreement, the 
airport is not scheduled to become operational until April 1998, almost 
one year after the original target date of June 30, 1997.

     The new airport will initially be capable of handling 35 million 
passengers and 1.5 million tons of air cargo annually.  With the later 
addition of a second runway, annual passenger and air cargo handling 
capacity would be raised to 80 million and nine million tons, 
respectively.  Work on transport links and land reclamation for the 
US$21 billion airport project is well underway and at the end of April 
1995, over 58% of the airport engineering projects had been completed. 
     
     Construction of the new airport and related infrastructure projects 
has generated a boom for the building and construction market.  
Infrastructure development has likewise increased the territory's demand 
for capital goods, which should remain strong over the next decade.

     Shipping and Port Activities

     Hong Kong enjoys perhaps the best natural deep-water port on the 
Chinese coast.  It serves as a transit point both for exports and re-
exports to south China in both capital and consumer goods and for re-
exports of merchandise to North America, Europe and elsewhere.  With 
continued high economic growth and industrialization in China, the 
development of deep water ports at Yantian and Gaolan in south China 
should be complementary to Hong Kong over the medium term.  Over the 
longer term increased competition should generate greater efficiencies 
in service.

     Hong Kong's container port is the world's busiest.  In 1994, Hong 
Kong's eight privately operated container terminals and mid-stream 
operators  handled 11.05 twenty foot equivalent units (TEU) of cargo, a 
20% increase over 1993.  The Port Development Board projects container 
throughput is expected to continue to increase by 10.9% through the year 
2011.
     
     Hong Kong's container throughput will continue to experience 
double-digit growth through the turn of the century.  Hong Kong projects 
it will require some 20 new container berths by the year 2006, providing 
new annual terminal capacity for 8 million TEU.  There are currently 
eight terminals with 19 berths.  Construction of CT9, which the Hong 
Kong Government had hoped to have operational by mid-1995, has as of 
April 1995 been put on hold indefinitely by Beijing's concerns with the 
award of the contract to a consortium involving a well known British 
trading firm and also the manner in which the project was originally 
tendered.  China has also not yet given its approval to proceed with 
construction of container terminals 10 and 11, citing environmental 
concerns.               

     Roads
     
     Hong Kong's roads have one of the highest vehicle densities in the 
world.  At the end of 1994, there were 454,932 licensed vehicles and 
about 1661 kilometers of roads, hence 274 vehicles per kilometer of 
road.  This high vehicle density, combined with difficult terrain and 
dense building development, poses a constant challenge to transport 
planning, road construction and maintenance.  To cope with worsening 
traffic congestion, largely due to the rapid growth in the number of 
private cars, the Highways Department has launched an extensive road 
construction program.  Roughly 60 road projects are under way and 30 are 
planned.  The department's budget for the financial year ending March 
1995 totals HK$9.26 billion (US$1.1 billion).  Of this, HK$8.69 billion 
is slated for major highway construction and HK$569 million for road and 
public lighting maintenance work.

     Telecommunications
     
     Hong Kong's telecommunications infrastructure ranks among the most 
technically advanced in the world.  During the summer of 1995, the 
government will open local voice service to three new operators.  
Thereafter, the only remaining telecommunications service under monopoly 
control will be international voice service.  American service and 
equipment providers will have substantial opportunities in the Hong Kong 
telecommunications market.  In fact, many are already doing very well.  
Moreover, year-end 1995, Hong Kong Telecom will offer video-on-demand 
over its telecommunications lines, making the territory a pace-setter on 
the information superhighway.  As telecommunications and broadcasting 
technologies converge, the demand and opportunities for TV programming 
will also increase. 
     
     One misperception about the Hong Kong telecommunications market is 
the belief of some that by establishing oneself in Hong Kong, one will 
automatically gain access to the China market.  Setting up shop in Hong 
Kong does provide excellent exposure to and experience with the China 
telecom market.  However, after Hong Kong reverts to Chinese sovereignty 
in 1997, operating in Hong Kong will not automatically permit one to 
operate in China since post 1997, as Hong Kong will continue to retain 
its own telecommunications law and regulations. 

     Environmental

     Over US$1 billion of environmental infrastructure project awards 
will be made in 1995.  Projects currently being awarded include: Refuse 
transfer stations (US$450 million), municipal sewage systems and related 
equipment (US$300 - 400 million), landfill restorations ($200 million), 
special waste incinerators ($30 million), indoor air quality baseline 
study ($1.5 million), and low-level radioactive waste storage ($1.5 
million).  As of June 1995, all of these projects are in advanced stages 
of the bidding process.

     The next round of environmental infrastructure projects to be 
awarded by the government will include a US$1 billion livestock 
slaughterhouse with a significant portion of air and water pollution 
control equipment (to be awarded in 1996) and several municipal solid 
waste incinerators, each valued at US$1 billion (awards possible 
beginning in 1998 or 1999).  Overall, however, the value of public 
project awards related to environmental infrastructure is expected to 
drop beginning in 1996 due to the 1997 transition of Hong Kong's 
sovereignty from Great Britain to China.

     Additional niche markets exist in Hong Kong for the following types 
of environmental technology:

     -  Electric Vehicles (US$5 million in 1996, US$50 million by 2002)
     -  Diesel particulate control equipment (US$5-10 million)
     -  Energy-efficient building technology (US$5-10 million), 
including lighting, insulation, and air conditioning systems
     -  Industrial air pollution control (US$5 to 10 million)
     -  Indoor air pollution equipment (US$5 to 10 million)


     The following is a list of major projects underway in Hong Kong.  
Authorities have awarded many of the major contracts.  Even in these 
cases, however, significant opportunities for subcontractors remain.


MAJOR INFRASTRUCTURE DEVELOPMENTS IN HONG KONG


PROJECT                                   TARGET
                                        COMPLETION DATE
Airport Core Program
Chek Lap Kok Airport                         1998
Northern Lantau Expressway                   1997
Tung Chung New Town Phase 1                  1997
Lantau Fixed Crossing                        1997
Route 3 (Tsing Yi & Kwai Chung Sections)     1997
West Kowloon Reclamation                     1997
West Kowloon Expressway                      1997
Airport Railway                              1998
Central-Wanchai Reclamation                  1997 & Beyond
Western Harbor Crossing                      1997


Port Facilities

Container Terminal 9                         1996 /1/
Container Terminals at Lantau Island         Through 2011 
River Trade Terminal at Tuen Mun             1997


Transport

Ting Kau Bridge                              1997
Country Park Section - Route 3               1998
Mass Transit Railway Extension               2001
Western Corridor Railway                     2001


Other

Drainage and sewage facilities               2003
Redevelopment of Kai Tak and Kowloon
Bay Reclamations                             1997 and Beyond
Telecommunications                           2003
Power Stations at Lamma Island               1998
Black Point Power Station and upgrading
  of Transmission Networks                   1999


Estimated Total Cost                         HK$350 billion

/1/ Delayed Indefinitely
Source:  Economic Report, 5/94 Hong Kong Bank (with updates)



                 CHAPTER III.     POLITICAL ENVIRONMENT

A.     Nature of Bilateral Relationship with the U.S.

     The U.S. relationship with Hong Kong is broad and deep.  Hong Kong 
is our thirteenth-largest trading partner and U.S. direct investment in 
the territory at year-end 1994 totaled close to US$12 billion on a 
historical cost basis.  The U.S. maintains a wide number of cultural and 
educational exchanges, and enjoys excellent cooperation in law 
enforcement matters.  Over 34,000 Americans reside in Hong Kong.


B.     Major Political Issues Affecting Business Climate

     Hong Kong will become a "Special Administrative Region" (HKSAR) of 
the People's Republic of China in 1997.  The Sino-British Joint 
Declaration, signed in 1984, and the Basic Law of the HKSAR, passed by 
China's National People's Congress in 1990, form the legal basis for 
China's "One Country, Two Systems" guarantees for Hong Kong.  The HKSAR 
is to have a high degree of autonomy, and enjoy executive, legislative 
and independent judicial power.  The social and economic systems, life-
style, and rights and freedoms currently enjoyed by Hong Kong people 
will remain unchanged for at least 50 years.  Beijing will be 
responsible for foreign affairs and defense of the HKSAR.

     Sino-British consultations on transition issues take place chiefly 
in the Joint Liaison Group (JLG).  The JLG (or other joint bodies) must 
approve Hong Kong's laws, economic agreements with third countries, and 
economic decisions that straddle 1997.  Sino-British disagreement on 
major transition issues has generated some  uncertainty over the 
territory's political future.  Hong Kong Governor Patten's proposals for 
modest reforms of Hong Kong's three tiers of governmental bodies (the 
Legislative Council, district boards, and municipal councils) were not 
agreed to by Beijing after 17 rounds of negotiations.  When the 
Legislative Council voted to approve the proposals in 1994, despite 
China's objection, Beijing announced that it would disband the 
Legislative Council elected in September 1995 upon resumption of 
sovereignty over Hong Kong.  Beijing further indicated that it may 
establish a provisional legislature after reversion until new elections 
are held under unspecified rules.  The future of the legislature, 
therefore, remains unclear. 

     The difficulties in Sino-British political relations have had some 
impact on Hong Kong's new infrastructure development, most notably in 
delaying progress on the new Chek Lap Kok airport and the construction 
of Container Terminal 9.  In late June 1995, however, the two sides 
finalized terms for financial support agreements for the airport 
projects, thus removing the last significant obstacle to full funding 
for this megaproject.  The fate of CT9 remains unresolved.

     A breakthrough occurred in June 1995, when Chinese and British 
negotiators reached agreement on the establishment of a Court of Final 
Appeal, which will replace the British Privy Council as the highest 
appeal body on July 1, 1997.  This development was widely seen as a step 
forward in assuring the continuity of the rule of law, which has been 
fundamental to Hong Kong's success as an international business and 
financial center.  Many hope that this agreement will lead to better 
cooperation in other areas, which will be important to maintaining 
business confidence in the territory beyond 1997.  

C.  Political System, Elections, Orientation of Major Political Parties

     As a British dependency, Hong Kong is a free society with legally 
protected rights.  Its constitutional arrangements are defined by the 
letters patent and royal instructions.  Executive powers are vested in a 
British crown-appointed governor who holds extensive authority.  The 
judiciary is an independent body adhering to English common law with 
certain variations.  Fundamental rights ultimately rest on oversight by 
the British Parliament.  In practice, however, Hong Kong largely 
controls its own internal affairs.  The governor appoints an advisory 
executive council, and a partially representative Legislative Council 
has limited powers.  The main functions of the 60-member Legislative 
Council (Legco) are to enact laws, control public expenditure and 
monitor performance of the government by putting forward questions on 
matters of public interest.       

     Of the 39 elected councilors to Legco, 18 were elected by universal 
suffrage in 1991, and this number will increase by two in the next 
elections in September 1995.  Twenty-one councilors were elected by 
functional constituencies which disproportionately represent the 
economic and professional elites and, moreover, violate the concept of 
one person-one vote, since voters in functional constituencies may vote 
both in a functional and a geographic constituency.  This 
disproportionality was mitigated in 1994 when Legco approved Governor 
Patten's proposal to allow for broad-based constituencies in nine new 
functional groupings. Legco further extended political franchise in the 
territory by lowering the voting age from 21 to 18 and opening up all 
seats on district and municipal  boards, which provide a forum for 
public consultation and participation, to direct elections.  
     
     Three major political parties are represented in Legco: the 
Democratic Alliance for the Betterment of Hong Kong, the Democratic 
Party, and the Liberal Party.  The first has a pro-Beijing orientation, 
the second strongly advocates broader democracy in the territory, and 
the third is pro-business.
     
     When Hong Kong becomes a Special Administrative Region under China 
in July 1997, the Basic Law will guarantee the rights and freedoms that 
Hong Kong residents now enjoy: the continued rule of law, and the 
maintenance of Hong Kong's capitalist system for 50 years.  The HKSAR 
will maintain its capitalist economic and trade systems, shall retain 
the status of a free port and continue a free trade policy with free 
movement of goods and capital.  It will retain its status as an 
international financial center.  It will, on its own, formulate monetary 
and financial policies and safeguard the free operation of business and 
financial markets.  The Basic Law states that the HKSAR will maintain 
its own currency and use revenues exclusively for its own purposes.  The 
Hong Kong Dollar will continue to be freely convertible and foreign 
exchange, gold and securities markets will continue to operate.  Systems 
currently in place, including Hong Kong's regulatory and supervisory 
framework, will remain unchanged.  Hong Kong's legal system, including 
the independence of the judiciary and obligation of the executive 
authorities to abide by the law, are slated to continue.  Beijing will 
be responsible for foreign affairs and defense of the HKSAR.



         CHAPTER IV.  MARKETING U.S. PRODUCTS AND SERVICES

     For most American products and services, initial market penetration 
in Hong Kong does not require an investment of millions of dollars of 
company funds.  With the propensity of Hong Kong citizens to buy 
American products, and the fact that Hong Kong is a "Free Port" with 
virtually no duties or tariffs and a wide ranging network of agents and 
distributors, a well-managed market penetration program with a moderate 
investment in market development is generally all that is required 
initially.  In the longer term, this could be followed with more 
ambitious investments in marketing, assembly or even a production 
facility.  The market for U.S. service firms is also quite open, with 
the exception of medical and legal professionals, as discussed in 
Section VII. A, below.

     Most American products do have a market in Hong Kong, and in many 
cases through Hong Kong to the PRC.  The best agents and distributors 
for China are mostly located in Hong Kong, although given China's size 
and diversity, it is often necessary to work with different agents for 
different regions of China.  Hong Kong companies are eager to talk to 
potential exporters and have a strong interest in representing U.S. 
products.


A.  Distribution and Sales Channels

     One of the best ways to sell products in the Hong Kong market is 
through the use of agents or distributors.  It is also an excellent way 
of minimizing the initial investment in the market.  As outlined below, 
there is a wide range of companies who can serve as agent or distributor 
for U.S. firms.


B.  Use of Agent/Distributors; Finding a Partner

     Working with agents and distributors in Hong Kong is very much like 
working with an agent in the United States.  An agent takes orders in 
the supplier's name.  Distributors act in their own name and may stock 
products purchased from the manufacturer for resale.  The choice depends 
on the relationship with which the manufacturer/supplier is most 
comfortable and the nature of the business.

     Hong Kong has no special legislation regarding agents and 
distributors.  Virtually anything which both sides can agree to and put 
into a written contract is acceptable and enforceable, including 
restrictions on territory and a grace period for termination of the 
agreement.  While not required by Hong Kong law, the more complex the 
contract, the more helpful legal counsel can be in drafting the text.  
Items that are "musts" for any contract include:
     
     -  Exclusivity and sales territories (always a sensitive issue; 
business people should be careful about granting an exclusive agency too 
soon or in too large a territory if the agent is to cover beyond Hong 
Kong.)

     -  Proprietary information (theft of intellectual property is 
prohibited by local law, but prevention of piracy is always less 
expensive and more effective than post-facto legal action.)

     -  Levels of sales activity -- set specific targets and goals to 
qualify for maintaining or renewing the agreement

     -  Time duration

     -  Payment terms

     -  Quality control -- inspection -- verification

     -  Rule of law -- jurisdiction in the USA vs. Hong Kong  (It is 
generally Hong Kong, but another location may be specified -- for 
arbitration, for example.)

     -  Covenants restricting activity following cancellation of the 
contract.

     There are many types of agents and distributors in Hong Kong, 
ranging from those who simply stock retail stores with standard items to 
agents who provide sales, engineering and technical support for complex 
systems.  It is common for a single company to deal in a wide variety of 
products - everything from chicken parts to airplane parts, for example.  
As long as the potential agent/distributor has relevant experience in 
the sector of interest, American firms should not be concerned.  Each 
sector within the standard (which usually means Chinese family) Hong 
Kong trading company is usually run as a discrete unit, led by a family 
member with specialized training who reports to the pater familia - the 
Managing Director. 


C.  Franchising

     During the past decade, Hong Kong and the region have been catching 
up with the concept of franchising.  In fact, franchising has become one 
of the fastest growing forms of business in Hong Kong.  In 1994, 
franchising contributed US$750 million to Hong Kong's gross domestic 
product (GDP).  U.S. firms have dominated this industry mainly through 
well known hamburger and pizza fast food outlets.  Other kinds of retail 
outlets ranging from bakeries to shoe repair are also expanding 
significantly.  The field is wide open.


D.  Direct Marketing

     Direct marketing is not a well-accepted sales channel in Hong Kong, 
although recently there has been some growth in direct marketing through 
television.  Mail-order and other forms of direct marketing are very 
small although some consumer products are sold very successfully via 
person to person marketing.  Shopping is one of the major leisure time 
activities in Hong Kong which, given Hong Kong's small size and its 
efficient transportation system, effectively limits the growth of this 
form of marketing technique.


E.  Joint-Ventures/Licensing

     Joint-ventures or strategic alliances can be very helpful in 
entering the market and are particularly important in competing for 
major projects.  (For additional information on joint ventures, see 
Section VII, Investment Climate.)  Companies may also choose to 
establish an office here themselves or rely on one of the many 
international trading companies to act as agents or distributors for 
imported products.

     Licensing is not a particularly common practice except in the field 
of brand name product manufacturing and marketing.


F.  Steps to Establishing an Office

     Foreign interests are allowed to incorporate their operations 
freely in Hong Kong, to register branches of foreign operations, or to 
set up representative offices.  There is no restriction on the ownership 
of such operations.  Company directors are not required to be citizens 
of, or resident in Hong Kong.  Reporting requirements are 
straightforward and not onerous.  There is no distinction in law or 
practice between investment by foreign controlled companies and those 
controlled by local interests.  There are no disincentives to foreign 
investment such as limitations on the use or transfer of foreign 
currency, or any system of quotas, performance requirements, bonds, 
deposits, or other similar regulations.  The high costs of labor and 
rents as well as the shortage of international schools are the major 
disincentives to establishing a presence in Hong Kong.


G.  Selling Factors/Techniques

     The major selling factors are the same as in the U.S.: price, 
quality, timeliness in delivery and service.  Initial sales require more 
face-to-face contact as Asians generally place a premium on developing 
personal connections.


H.  Advertising and Trade Promotion (including listing of Major 
Newspapers and Business Journals)

     Many promotional vehicles are open to suppliers to introduce and 
develop their services in the Hong Kong market.  These include:

     -  special trade fairs and exhibitions

     -  advertising in the media and other public relations activities

     -  holding seminars

     -  in-store promotions

     -  joint promotions with wholesale and retail outlets

     Hong Kong is a major conference and exhibition center.  Hundreds of 
international exhibitions are held annually.  The Hong Kong Conference 
and Exhibition Center has 180,000 square feet of exhibition space and 
will soon be expanding.  Television is a widely used medium with an 
estimated daily audience of 5.3 million out of a population of 6.1 
million.  A list of the major trade shows and trade show organizers is 
supplied in the appendix.

     Suppliers should provide technical catalogs in English, and at 
least some information in Chinese, for distribution to agents and firms.  
Company brochures are particularly useful when visiting Hong Kong for 
the first time.  English-Chinese business cards are a must. Business 
people should also be aware that business cards are exchanged far more 
frequently in Hong Kong and China than in the United States.

     As one of the largest centers in the world for Chinese language 
publications, the territory produces 600 publications, including 51 
Chinese newspapers and 3 English daily newspapers.  Advertising 
agencies, including many of international standing, offer a full range 
of services. A list of the major newspapers and magazines follows.

     Newspapers:

     South China Morning Post
     South China Morning Post Publishers Limited
     Morning Post Building
     Tong Chong Street
     Quarry Bay, Hong Kong
     Tel: (852) 2565-2222
     Fax: (852) 2565-5380

     Hong Kong Standard
     Hong Kong Standard Newspapers Ltd.
     4/Fl., Sing Tao Building
     1 Wang Kwong Road
     Kowloon Bay
     Kowloon, Hong Kong
     Tel: (852) 2798-2798
     Fax: (852) 2795-3027, 2795-3009

     Eastern Express 
     Eastern Express Publisher Ltd.
     Oriental Press Center
     Wang Tai Road
     Kowloon Bay
     Kowloon, Hong Kong
     Editorial:  Tel: (852) 2707-1111
                 Fax: (852) 2707-1122
     Display advertising:Tel: (852) 2707-3333
                         Fax: (852) 2707-2233


     Trade Journals:

     AmCham (Monthly)
     American Chamber of Commerce in Hong Kong
     Room 1030, Swire House
     Central
     Hong Kong
     Tel: (852) 2526-0165
     Fax: (852) 2810-1289

     Asian Business (Monthly)
     Far East Trade Press Ltd.
     Block C, 10/F., Seaview Estate
     2-8 Watson Road
     North Point
     Hong Kong
     Tel: (852) 2566-8381
     Fax: (852) 2508-0197

     Construction & Contract News (Monthly)
     Trend Publishing (HK) Ltd.
     19/F., Washington Plaza
     230 Wanchai Road
     Hong Kong
     Tel: (852) 2832-9298
     Fax: (852) 2832-9667

     Far Eastern Economic Review (Weekly)
     Review Publishing Company Limited
     25/F., Citicorp Center
     18 Whitfield Road
     Causeway Bay
     Hong Kong
     Tel: (852) 2508-4300
     Fax: (852) 2503-1537

     Hong Kong Industrialist (Monthly)
     Federation of Hong Kong Industries
     4/F., Hankow Center
     5-15 Hankow Road
     Tsimshatsui, Kowloon
     Hong Kong
     Tel: (852) 2723-0818
     Fax: (852) 2721-3494

     Productivity News (Monthly)
     Hong Kong Productivity Council
     HKPC Building
     78 Tat Chee Avenue
     Yau Yat Chuen, Kowloon
     Hong Kong
     Tel: (852) 2788-5678
     Fax: (852) 2788-5900


I.  Pricing Product

     If possible, quote in metric, on a deliverable basis to Hong Kong 
i.e. CIF or C&F rather than FOB.  Hong Kong companies have lots of 
options; American companies must make it as easy as possible to deal 
with them.


J.  Sales Service/Customer Support
     
     Some sort of local presence, whether it is a branch office or an 
agent or distributor, is very important in getting established in the 
market.  Business in Hong Kong and elsewhere in Asia requires 
relationships which can only be developed with some sort of full time 
presence.  Prompt after-sales service is also crucial to succeeding in 
this very competitive market.


K.  Selling to the Hong Kong Government

     The Hong Kong Government Supplies Department (GSD) is the central 
purchasing, storage and supply organization for the Hong Kong 
Government, serving over 80 government departments and agencies, and 
many subsidiary organizations.  The GSD usually purchases by open 
tender, with decisions based on price, quality and delivery.  The GSD 
gives no preference to any particular source of supply from any country 
or organization.  GSD spent about US$540 million in 1994, with American 
companies winning around 32% of the total procurement contracts (about 
US$171.2 million).

     Tenderers generally have about six weeks to prepare their offers.  
Invitations to open tender are published in the Hong Kong Government 
Gazette and in leading Hong Kong newspapers.  Tenderers are urged to 
submit offers with at least a 30-day validity period.  Payment is 
usually effected by check within 30 days of delivery of the goods, but 
terms are often amended to suit special conditions of the contract.  
Total bid prices and names of the successful tenderers are published 
weekly in the Government Gazette.

     For information about a subscription to the Hong Kong Government 
Gazette, contact:

          Information Officer
          Publications Sales Section
          Information Services Department
          Ground & 1st Floors
          French Mission Building
          1 Battery Path, Central
          Hong Kong
          Tel: (852) 2842-8802
          Fax: (852) 2537-1543

     The GSD maintains lists of registered suppliers.  To become a 
"Registered Supplier" and regularly receive the GSD's tender documents, 
companies must submit questionnaires detailing business activities, 
licensing arrangements, financial resources, the goods and services they 
offer.  The GSD evaluates this information and selects qualified 
suppliers for inclusion on their register.  The Commercial Service, Hong 
Kong office regularly reports on government tenders.  These reports are 
available via the Economic Bulletin Board from the Department of 
Commerce.

     Companies seeking more information on the GSD are encouraged to 
contact:

          The Director of Government Supplies
          Government Supplies Department
          12 Oil Street
          North Point
          Hong Kong
          Tel: (852) 2802-6100
          Fax: (852) 2510-7904
          Telex: 61675 HKGSD HX


L.  Protecting your product from IPR Infringement

     The best protection for an American company is to aggressively 
market in Hong Kong.  By using a good local agent, American 
manufacturers or suppliers can make their  product legally available.  
Dealers have a strong incentive to stop any piracy, and with good local 
connections, have a better chance of making that happen than an American 
company which is not participating in the market.  Hong Kong's laws are 
effective and include a full set of tools to raid, enjoin, and seek 
damages from unauthorized producers and sellers of infringing works.  
The chief law enforcement body for IPR is the Customs and Excise 
Department.  However, protecting copyrights or trademarks takes 
vigilance, and even with the U.S. Government vigorously pressing Hong 
Kong and other Asian governments on this issue, enforcement is still 
dependent on reporting incidents of product piracy to the authorities.  
This requires a strong local presence.  Substantially stiffer penalties 
for copyright infringement passed in 1995 will hopefully reduce IPR 
infringing products.  For more information on intellectual property 
legislation and registration, see Section VII. H, below.


M.  Need for a Local Attorney

     Hong Kong follows the Common Law System and disputes which cannot 
be resolved between the interested parties are commonly pursued through 
the court system.  Attorneys are needed for most court processes and are 
extremely expensive.



          CHAPTER V.  LEADING SECTORS FOR U.S. EXPORTS AND INVESTMENT

     Hong Kong, with the second-highest per capita income in East Asia, 
offers bountiful opportunities to U.S. businesses.  No tariffs and few 
government imposed obstacles hinder U.S. imports.  The demand for 
capital goods and consumer goods is expanding.  Some of the best 
prospects include computers and telecommunications equipment for the 
information technology needs of Hong Kong's burgeoning trading and 
financial offices; construction machinery for the major infrastructure 
projects as well as the private office and housing markets; and electric 
power generating equipment to meet the demands of a growing economy.

     There is also potential growth for U.S. grocery line items as the 
number of existing and new food retail outlets continues to increase.  
Because of established ties and advantageous trading arrangements, most 
of Hong Kong's grocers traditionally looked to the United Kingdom, 
Europe, Australia, New Zealand and other commonwealth countries for 
supplies.  In recent years, however, those buying habits are shifting 
and many American items are now available on local shelves, at highly 
competitive prices.  The most significant and phenomenal development has 
been the establishment of the first U.S. style warehouse/club retail 
stores in Hong Kong.  Grandmart, established in 1993, was the first and 
now has eight stores which primarily carry food (and non-food) products 
from the United States.  Unlike most supermarket chains, there are no 
slotting fees, giving U.S. suppliers, big and small alike, an 
unprecedented advantage in gaining access to this highly competitive 
market.  While GrandMart was the first to introduce the warehouse 
concept to the territory, over the past two years a variety of new 
players are quickly joining the local retail scene.  These include Value 
Club, a joint venture of Wal-Mart and Charoen Pokphand Agro-Industry 
Co., M-Mart and U-Save.  While the Hong Kong dollar is linked to the 
U.S. dollar at US$1.00 = HK$7.80, the recent weakening of the U.S. 
dollar against most world currencies has helped strengthen the 
competitiveness of American products here.

     The Hong Kong people like new products, and will experiment with 
different foreign products.  In the consumer market Hong Kong is 
definitely an international conglomerate.  U.S. suppliers have been 
successful in Japanese supermarkets, and even Chinese grocery chains.  
U.S. Department of Agriculture food shows and in-store promotions also 
offer an excellent way for U.S. firms to offer new products to the Hong 
Kong markets.  With ATO's service, and Hong Kong's strong economy, this 
is an ideal location for foreign products.

A.  Best Prospects for Non-Agricultural Goods and Services


Following is a list of the non-agricultural goods and services best 
prospects sectors for U.S. exporters to Hong Kong:

No.     Code          Sector Description

1     CON          Construction Equipment
2     TEL          Telecommunications Equipment
3     ELP          Electric Power Systems
4     ELC          Electronic Parts/Components
5     INS          Insurance
6     DRG          Drugs and Pharmaceuticals
7     TRA          Travel and Tourism Services
8     LAB          Scientific and Analytical Equipment
9     POL          Waste Water Treatment Technologies
10    PMR          Plastic Materials and Resins
11    AIR          Aircraft and Parts
12    CSF          Computer Software
13    CPT          Computers and Peripherals
14    PGS          Printing Equipment
15    MED          Medical Equipment
16    COS          Cosmetics and Toiletries
17    CON          Building Products

Note:  All Figures in U.S. Dollar millions unless otherwise indicated


1 - CONSTRUCTION EQUIPMENT (CON)

Narrative:

The construction industry has been the backbone of Hong Kong's economy.  
According to a government report, the total value of Hong Kong's 
construction was US$11.5 billion in 1994.  The construction and property 
sectors together contribute to Hong Kong's GDP as much as the wholesale, 
retail, import and export, restaurant, and hotel sectors combined.

Public housing development, private residential and commercial 
development, major infrastructure projects, and the China market will 
continue to create demand for construction equipment for the next few 
years.  Major infrastructure projects in Hong Kong include the US$21 
billion Airport Core Program, which is half completed, and the US$15 
billion railway network expansion project, which is scheduled to begin 
as early as 1996.  Imports of construction equipment from the U.S. will 
continue to increase as many major U.S. brands are well known for 
superior quality.

                                      1994      1995       1996

D.     Total Market Size              300        330        360
E.     Total Local Production          0          0          0
F.     Total Exports                  180        200        220
G.     Total Imports                  480        530        580
H.     Total Imports from U.S.         15         30         40

The above statistics are unofficial estimates.

2 - TELECOMMUNICATIONS EQUIPMENT (TEL)

Narrative:

Telecommunications is one of Hong Kong's most dynamic industries.  1993 
turnover (the latest figures available) reached US$4 billion, accounting 
for 2% of the territory's domestic product.

As a major international business center, Hong Kong can well be proud of 
its telecommunication infrastructure.  It is the first city in the world 
with an entirely digital fixed network.  Its fax penetration rate is 
second in the world in terms of fax lines per person.  Its 65% telephone 
density is second only to Japan in Asia, and 20% of its 6 million 
population are pager subscribers.

Deregulation of the local telecommunications industry will provide 
foreign telephone service providers and equipment manufacturers with an 
admission ticket to this multi billion US$ telecommunication market.  
From July 1, 1995 onward, Hong Kong Telecom has been joined by three 
other newly formed consortia to provide fixed wired voice service to 
Hong Kong.  These three consortia are together investing a total of 
HK$11.5 billion (US$1.44 billion) to set up their networks.

In addition to the fixed networks, the Hong Kong mobile 
telecommunications market is also undergoing tremendous change.  The 
Telecommunications Authority, the body responsible for regulating the 
Hong Kong telecommunication market, will issue up to 6 Personal 
Communications Services (PCS) licenses and up to 4 Cordless Access 
Services (CAS) licenses in the 1.7-2.0 GHz band.  A total of 14 
interested parties have submitted their tenders for PCS licenses.

Demand for advanced telecommunications equipment will also increase from 
Mainland China, as the Chinese government recently committed to invest 
US$6 billion to expand and modernize the country's communications 
network.  Hong Kong will continue to serve as an effective entrepot for 
sales to China.  U.S.-made telecommunication facilities enjoy a good 
reputation for their high technological level, and U.S. 
telecommunication equipment manufacturers and system integrators are 
advised not to miss the opportunities arising in Hong Kong and China.

Most promising subsectors:
. Transmission Systems
. Switch & networking facilities
. Fiber optic cable

                                    1994           1995           1996

Total Market Size                   3,050          3,010          3,612
Total Local Production              1,372          1,302          1,107
Total Exports                       2,148          2,578          2,638
Total Imports                       3,827          4,286          5,143
Total Imports from U.S.               574            643            804

The above statistics are unofficial estimates.

3 - ELECTRIC POWER SYSTEMS (ELP)

Narrative:

Thermal power remains the core source of electricity supply both in Hong 
Kong and China.  Demand for thermal power generating equipment including 
boilers, turbines, generators, etc. will be flat in Hong Kong after the 
completion of the Lamma 7, 350MW coal-fired unit of Hong Kong Electric 
Holdings Limited, scheduled for commissioning in late 1995.  However, 
demand for such equipment from China remains strong.  China's installed 
generation capacity at the end of 1994 was 199 gigawatts.  China is 
planning to increase this to 300 gigawatts by the year 2000.  Estimates 
are that China will need to invest US$100 billion over the next ten 
years to ease its power shortage problems.  In 1994, the market demand 
for power plant facilities was about US$14 billion, of which about 
US$3.4 billion of equipment had to be imported.  This leaves plenty of 
room for foreign power equipment such as boilers, turbines and generator 
suppliers.

As most of Hong Kong's imported power equipment is re-exported to China, 
U.S. suppliers should target Hong Kong as part of their marketing 
strategy for China.  Although U.S. equipment maintains only about an 8% 
share of the Hong Kong import market, huge demand in China still 
provides lots of room for U.S. suppliers.

                                   1994           1995           1996

Total Market Size                   500            540            675
Total Local Production                0              0              0
Total Exports                     1,250          1,560          1,950
Total Imports                     1,750          2,100          2,625
Total Imports from U.S.             144            180            225

The above statistics are unofficial estimates.

4 - ELECTRONIC PARTS/COMPONENTS (ELC)

Narrative:

Although Hong Kong's electronic industry is facing strong competition 
from its neighboring countries, it remains Hong Kong's 2nd largest 
export earner, second only to clothing/textiles.  In 1994, it employed 
45,896 workers (10.5% of total manufacturing employment), and earned 
about US$7.5 billion in exports.  (32.9% of Hong Kong's total domestic 
exports).

Hong Kong produces a large variety of sophisticated and less 
sophisticated finished products, including radio and television sets, 
MODEM, computers, printers etc.  Most of the production is conducted on 
an original equipment manufacture (OEM) basis.  Hong Kong is both a top 
exporter of finished electronic products, and a sizable importer of 
electronic parts and components, especially in the sector of computers & 
peripherals, telecommunications, and consumer electronics.  The total 
market for electronic parts and components in 1995 was US$11.5 billion, 
expected to increase 15-20% annually over the coming three years.  In 
1994, Japan dominated the component market with a 29% share.  China came 
second with a 17% share, and the U.S. was third by capturing a 11% 
share.

Hong Kong is gradually losing its competitive edge in price advantage to 
its less developed neighboring countries, such as Thailand, Indonesia, 
Malaysia, Philippines, and China on low-end electronic products.  In 
order to compete, local manufacturers have re-geared their production 
tactics by switching to high value-added products.  U.S. companies 
should be aware of the structural change in Hong Kong's electronic 
industries, as demand for high-end electronic components and parts are 
in great demand.  China with its rising living standards is also seen as 
a major growth area for Hong Kong consumer products.  China overtook the 
United States for the first time in 1993 as the largest export market 
for Hong Kong-made electronic goods.  The large number of factories set 
up by Hong Kong electronic manufacturers in Southern China are the major 
consumers of parts and components exported by Hong Kong.  The strong 
sales of electronics products in China have created high demand for 
parts and components, which China's domestic component industry can 
hardly satisfy.

Most promising subsectors:
. Digital monolithic integrated units
. Non-digital monolithic integrated units
. Parts & accessories for computers
. Parts & accessories for audio/video equipment
. Memory Card International Association (PCMCIA) cards, printed circuit 
boards

                                    1994       1995       1996

Total Market Size                  10,560     11,515     13,818
Total Local Production              8,425      8,846      9,288
Total Exports                      17,553     21,941     25,002
Total Imports                      19,688     24,610     29,532
Total Imports from U.S.             2,953      3,692      4,430

The above statistics are unofficial estimates.

5- INSURANCE (INS)

Narrative:

Over the past few years, the insurance industry has enjoyed above 
average growth in Hong Kong.  The market penetration of the life 
insurance industry remains below western standards, however, which means 
that the potential for growth is still great.  In addition, Hong Kong's 
increasing role in China trade creates another rapidly expanding market 
for the insurance industry.  Finally, the insurance industry is ideally 
placed to administer the proposed compulsory provident fund scheme, 
which will be put forth for debate by the Legislative Council in the 
summer of 1995.

As of October 1994, there were 228 insurance companies in Hong Kong, 40 
of which were authorized to do long term business (life insurance and 
retirement schemes), 169 general insurance (accident, health, motor 
vehicle and marine insurance) and 19 composite insurance.  Of these 228 
insurers, a total of 103 insurers are incorporated in Hong Kong while 
U.K., U.S. and Bermuda have 29, 21 and 9 respectively.  The rest are 
incorporated in 26 different countries.  As of September 1994, there are 
a total of 15,079 retirement schemes approved by the local government.  
U.S. insurers may consider exploring the life insurance and retirement 
funds industry as these two sectors are expected to demonstrate 
substantial growth.

                                    1994           1995           1996

Total Sales                         4,218          5,062          6,074
Sales by Local Firms                  928          1,114          1,336
Overseas Sales by Local Firms           0              0              0
Sales by Foreign Owned Firms        3,290          3,948          4,738
Sales by U.S.-Owned Firms           1,160          1,392          1,670

The above statistics are unofficial estimates.


6 - DRUGS AND PHARMACEUTICALS (DRG)

Narrative:

In Hong Kong, the 1994 average annual medicine consumption of an 
individual was US$54.  This figure will continue to increase as people 
become more affluent. U.S. pharmaceutical products are well regarded and 
welcome in Hong Kong. Pharmaceutical products are distributed through 
three channels:  hospitals, private practitioners and over-the-counter 
sales.  These channels occupy a distribution share of 33%, 18% and 49% 
respectively.  There are 37 public hospitals managed by the Hospital 
Authority and 13 private hospitals, with a total 27,000 beds.  The 
population is served by 7,500 doctors and 950 pharmacists.  There are 
1,500 drugstores in the territory.  Hong Kong also re-exports a lot of 
pharmaceutical products to China.

                               1994        1995         1996

Total Market Size               328         426          553
Total Local Production          139         153          168
Total Exports                   834         934        1,046
Total Imports                 1,023       1,207        1,431
Total Imports from U.S.          71          85          102

The above statistics are unofficial estimates.

7 - TRAVEL AND TOURISM SERVICES (TRA)

Narrative:

Hong Kong is a crowded city with a population of 6.1 million.  1994 per 
capita GDP was US$21,760.  As Hong Kong residents become more affluent, 
they are traveling abroad in record numbers.  Hong Kong's outbound 
tourism is characterized by the following two factors:

-  Economic:  When the economy is in a downturn, Hong Kong people will 
opt for shorter trips instead of long haul travel.  Yet overall tourist 
growth will not be affected.

-  Price:  Hong Kong tourists are quite sensitive to price.  A discount 
on airfare or tour package prices will usually increase the number of 
outbound tourists.

In recent years, emigration has been growing rapidly.  According to the 
latest statistics, the number of emigrants in 1994 was estimated at 
62,000, with the majority going to Canada.  As a result, many people 
travel to Canada to visit their families and friends during their 
holidays.  Many of these people are interested in visiting the U.S. on 
their trips to Canada.

Remarks:     *The figure excludes departures to China and Macau.
             #The figure is calculated by multiplying the average travel 
receipts generated by each foreign visitor to the U.S. by the number of 
departures of Hong Kong residents to the U.S.

                                   1994         1995        1996

* Total Outbound Travel ('000)    2,798        3,134       3,510
  - in terms of departures
Outbound Travel to USA ('000)       188          225         270
  - in terms of departures
# Travel Receipts (Millions)        240          300         375

The above statistics are unofficial estimates.

8 - SCIENTIFIC AND ANALYTICAL EQUIPMENT (LAB)

Narrative:

The Hong Kong government is playing a more active role in the 
Territory's industrial transformation process.  More funding is being 
allocated to research and development.  Under the Industrial Support 
Scheme, a provision of approximately HK$200 million (US$25 million) will 
be made available during 1995/96.  This program aims to enhance the 
competitiveness of local manufacturing industries.  More and more local 
manufacturers are realizing that only by gearing their production 
capability to hi-tech items can they effectively compete with less 
developed countries, such as Indonesia, Thailand, Malaysia, Vietnam.  In 
order to upgrade their production capability, they will increase imports 
of advanced equipment.  This should increase opportunities for U.S. 
firms, as demand for U.S. origin scientific and analytical instruments 
is high because of the reliability of these products.  U.S. companies, 
however, face increasing challenges from Europe and Japan.  They also 
face competition from Taiwan, Korea, and Singapore for less 
sophisticated machinery.

Hong Kong also serves as a window for the export of hi-tech analytical 
equipment to China.  Market prospects have been further improved with 
the April 1994 dissolution of COCOM (Co-ordination Committee for 
Multilateral Export Controls).  As such, advanced hi-tech laboratory 
testing equipment can now be exported to China via Hong Kong more 
easily.

Most promising subsectors:
oscilloscopes; spectrum analyzers; instruments and apparatus for 
measuring/ checking electrical quantities (HS 9030)

                                   1994          1995          1996

Total Market Size                   56            67            77
Total Local Production              14            17            18
Total Exports                      126           152           179
Total Imports                      168           202           238
Total Imports from U.S.             54            65            78

The above statistics are unofficial estimates.

9 - WASTE WATER TREATMENT TECHNOLOGIES (POL)

Narrative:

The implementation of a Water Control Zone in Hong Kong's Victoria 
Harbor in early 1995 has put substantial pressure on over 2,000 
factories to upgrade or install waste water control equipment.  The 
maximum fine for non-compliance with effluent standards now stands at 
US$25,000 for the first offence, US$50,000 for additional violations.  
Hong Kong's Industry Department projects that the total cost of 
compliance for Hong Kong factories now affected by the Water Control 
Zone will reach US$250 million, spread over a period of several years.  
This should provide excellent opportunities for U.S. firms, as U.S. 
technology for process controls, water quality monitoring instruments, 
reverse osmosis, ultrafiltration, and biological chemicals are all 
considered highly competitive in Hong Kong's market.

The key industries needing waste water control equipment are:  
Electroplating, electronics, bleaching and dyeing, and food processing.  
Equipment that creates a payback period for the factory resulting from 
saved energy, water, or raw materials will have the best chance for 
success in Hong Kong's waste water control equipment market.

                                   1994          1995          1996

Total Market Size                   42            55            72
Total Local Production               7             8            12
Total Re-Exports                    30            35            36
Total Imports                       65            82           101
Total Imports from U.S.             18            23            27

The above statistics are unofficial estimates.

10 - PLASTIC MATERIALS AND RESINS (PMR)

Narrative:

Plastic raw materials produced in Hong Kong can only satisfy about 10% 
of local demand.  The rest have to be imported, mainly from Taiwan, 
Japan and the U.S.  The Hong Kong dollar is pegged to the U.S. dollar, 
so the slide of the dollar in 1995 has increased the competitiveness of 
U.S. products against products from other places in terms of prices.  
Coupled with the fact that the U.S. has high quality plastic raw 
materials, Hong Kong presents good potential for U.S. products.  Major 
local end-users include factories producing toys, packaging materials, 
shoes, housewares and casings of electrical and electronic consumer 
goods.  Hong Kong is a major world supplier of such consumer products, 
hence there are good prospects for exporting plastic raw materials to 
Hong Kong.

                                    1994           1995           1996

Total Market Size                    951          1,428          1,856
Total Local Production                77             85             98
Total Exports                      4,125          5,156          6,445
Total Imports                      4,999          6,499          8,203
Total Imports from U.S.              552            635            730

The above statistics are unofficial estimates.

11 - AIRCRAFT AND PARTS (AIR)

Narrative:

Hong Kong is served by 55 airlines which operate about 1,200 direct  
flights in and out of Hong Kong weekly to 94 other cities.  In 1994, 
these airlines accounted for more than 140,000 aircraft movements and 
brought about 27 million passengers and 1.2 million tons of cargo 
throughput at the Hong Kong International Airport at Kai Tak, making the 
Hong Kong airport one of the busiest in the world.  Hong Kong's three 
home-based airlines own a total of 65 aircraft.  Replacement and 
expansion needs definitely create a demand for more aircraft 
particularly after the new replacement airport at Chek Lap Kok becomes 
operational in 1997.

At present, the Hong Kong Aviation Engineering Company (HAECO) handles 
all aircraft maintenance at Kai Tak.  It is expected that three 
franchisees will provide service at the new Chek Lap Kok airport.  The 
expected increase in aircraft movements when Chek Lap Kok opens in late 
1997 or early 1998 will increase the demand for aircraft parts for 
maintenance use.

The U.S. already maintains a 76% share of the import market for aircraft 
and parts, and the U.S.'s long established reputation in Hong Kong 
should enhance its competitiveness still further in the expanded market 
after 1997.

                                   1994          1995          1996

Total Market Size                  415           478           550
Total Location Production            0             0             0
Total Exports                       69            79            91
Total Imports                      484           557           641
Total Imports from U.S.            369           424           488

The above statistics are unofficial estimates.

12 - COMPUTER SOFTWARE (CSF)

Narrative:

Hong Kong has become one of the most sophisticated software markets in 
the Asia-Pacific region.  As an integrated manufacturing and 
transportation center and a center for finance, communications, design 
and marketing, quality computer software is indispensable to support the 
rapid development of this city.  A rough estimate of the current 
software market is US$170 million, and it has been growing at an annual 
rate of over 20% since 1991.  Since the U.S. software industry is the 
world's most advanced, Hong Kong end-users have a preference for U.S. 
origin software.  This is reflected in the lion's share of the market 
(48%) captured by the U.S. in 1994.

Among imported software, accounting and financial software remain the 
most common applications.  There is, however, increasing demand for 
CAD/CAM programs.  Industry sectors such as trading, distribution and 
retailing also affect the growth of the local software market.  
Networking software for commercial organizations is also gaining 
significance.  Other imported software for general applications, such as 
word-processing and database, are used extensively in Hong Kong.

Pursuant to the signing of the Sino-U.S. agreement on intellectual 
property rights in February 1995, enforcement task forces are being 
established in cities and provinces of China to control copyright and 
software infringements.  Coupled with the removal of quotas and 
licensing requirements for software products, software sales through 
legitimate channels in Hong Kong to China are expected to expand 
substantially.

With US$7.5 million software imports re-directed to China in the first 
quarter of 1995 (representing an 80% increase over 1994), Hong Kong's 
role in distributing imported software products and providing service 
support to the Chinese market is growing.

                                   1994          1995          1996

Total Market Size                  159           170           185
Total Local Production              35            50            60
Total Exports                       95           140           185
Total Imports                      219           260           310
Imports from U.S.                   77            91           105

The above statistics are unofficial estimates.

13 - COMPUTERS AND PERIPHERALS (CPT)

Narrative:

As an international finance center and an integrated manufacturing and 
transportation center, Hong Kong's need for information processing has 
been on the rise.  Meanwhile, office workers' salaries have doubled in 
the last ten years.  This generates a huge demand for sophisticated 
computer equipment.

Although Hong Kong produces a wide variety of computer hardware 
products, major components such as central processing unit (CPU) chips, 
integrated circuits, disk drives, key boards and monitors are imported 
from around the world (principally the United States, Japan and Taiwan.)  
Imports in the personal computer market alone are currently estimated to 
be worth more than US$230 million.  The latest market trend is in 
notebook or laptop computers with desktop-compatible features.

Although high quality U.S. brand PC's are well received in this market, 
price is still a major impediment to increasing sales volume.  In view 
of that, most U.S. vendors have set up production facilities in Asia to 
keep product prices competitive.

With China's open door policy, China has become Hong Kong's largest 
computer re-export market.  In 1994, over 25% of Hong Kong's total 
computer imports were destined there.  With the majority of China's 
foreign investments coming from Hong Kong, the established Hong Kong 
linkage provides the convenience and network for expanding Hong Kong's 
computer re-exports.

                                    1994           1995           1996

Total Market Size                  1,526          1,200          1,300
Total Local Production             1,975          2,320          2,400
Total Exports                      5,375          6,790          7,300
Total Imports                      4,926          5,670          6,200
Imports from U.S.                    958          1,020          1,150

The above statistics are unofficial estimates.

14 - PRINTING EQUIPMENT (PGS)

Hong Kong's excellent telecommunications infrastructure provides local 
publishers and news media instantaneous information access to the world, 
helping to establish Hong Kong's leading position in printing and 
publishing in Asia.  With over 4,800 printing establishments and 200 
publishing houses, Hong Kong produces a wide range of printed materials.  
They include books, brochures, pamphlets, packaging materials, 
newspapers, periodicals and advertising catalogues.

Large printers in Hong Kong handle job orders from renowned publishers 
such as Oxford University Press, Longman and Macmillans, and specialize 
in printing books.  Over 20 newspaper printers are now serving the 76 
daily newspapers.  Meanwhile, smaller establishments are self-sustaining 
by providing printed materials for local consumption.

Because of the escalating production costs, a number of smaller local 
printers are shifting their production bases to Southern China in search 
of more cost-effective operations.  Along with this transition, Hong 
Kong has become a re-export center for new printing machinery to China.  
Total re-exports to China in this respect amounted to US$163 million in 
1994.  For those larger printers based in Hong Kong, they have invested 
substantially in high-tech machinery and equipment to expand their 
production capacity in order to maintain competitiveness in the world 
market.

In the past, the United States has not been able to dominate the local 
printing machinery market.  In 1994, it ranked third behind Germany and 
Japan.  However, with the market's awareness of and interest in the 
latest technology, which the U.S. is famous for, the United States is 
now in a favorable position to increase its market share.

                                   1994          1995          1996

Total Market Size                   103           100           105
Total Local Production               58            55            55
Total Exports                       205           175           180
Total Imports                       250           220           230
Imports from U.S.                    18            16            18

The above statistics are unofficial estimates.

15 - MEDICAL EQUIPMENT (MED)

Narrative:

Hong Kong's 6.1 million residents are provided with a comprehensive 
range of medical and health services by the public and private sectors.  
As such, there exists a good market for U.S. medical products, 
particularly high-end diagnostic equipment.  Hong Kong has 37 public 
hospitals managed by the Hospital Authority and 13 private hospitals, 
with a total of 27,000 beds.

Hong Kong does not manufacture any medical equipment at all.  It relies 
entirely on imports.  And a large portion of its imports are re-exported 
to China.  As import tariffs for medical equipment range from 25% to 
40%, and an import permit is required for the China market, some 
companies take the risk of smuggling the equipment into China.  As a 
result, the 1994 total exports which included re-exports to China is 
probably more than US$347 million, the official figure recorded by the 
Hong Kong government.

                                   1994          1995          1996

Total Market Size                    73            87           104
Local Production                    N/A           N/A           N/A
Total Exports                       347           364           382
Total Imports                       420           451           486
Total Imports from U.S.             128           140           154

The above statistics are unofficial estimates.

16 - COSMETICS AND TOILETRIES (COS)

Narrative:

In his budget speech in March 1993, the Financial Secretary announced 
the lifting of the 30% duty on cosmetics and perfumery products in Hong 
Kong.  As a result, demand leapt upwards as Hong Kong's 9 million plus 
annual visitors and 3 million female population took advantage of the 
lower prices.  The import of cosmetics rose from US$266.12 million to 
US$342.3 million (an increase of 28.6%) in 1993, and in 1994 imports 
increased another 31.4% to US$449.77 million.  Hong Kong continues to 
remain a strategic marketing and distribution center for the beauty 
industry.

Research on visitor spending in 1993 conducted by the Hong Kong Tourist 
Association revealed that visitors spent more than US$129 million on 
cosmetics and a further US$47.93 million on perfumery.  In 1994, the 
import of perfumery from the U.S. rose from US$4.38 million to US$10.83 
million (an increase of 147%).  U.S. skin care and color cosmetics also 
increased by  32% (from US$31.2 million to US$41.04 million).  The 
statistics given below are for products such as perfumery, skin care and 
color cosmetics, shampoo and toiletries.  

                                   1994          1995          1996

Total Market Size                  309           339           373
Total Local Production              18            20            22
Total Exports                       14            16            17
Total Re-Exports                   145           159           175
Total Imports                      450           495           544
Imports from the U.S.               68            75            82

The above statistics are unofficial estimates.

17 - BUILDING PRODUCTS (CON)

Narrative:

As a result of the on-going construction boom in Hong Kong, building 
products will continue to be in great demand over the next several 
years.  The major driving forces for the escalating demand include 
public housing development, private residential and commercial 
development, infrastructure projects, and the China market.

Hong Kong relies a great deal on imports because local production is 
insufficient to support the US$11.5 billion construction industry.  
Competition is stiff in the imports market.  Major players in the market 
include Japan, Italy, Germany, Spain, the U.K., and the U.S.  U.S. 
products, in general, are well positioned in the market and enjoy a good 
reputation for their quality.  

                                    1994           1995           1996

Total Market Size                  1,050          1,150          1,250
Total Local Production               500            550            600
Total Exports                        450            500            550
Total Imports                      1,000          1,100          1,200
Total Imports from U.S.               50             55             60

The above statistics are unofficial estimates.

B.  Best Prospects for Agricultural Products


Sector Description

Poultry
Ginseng
Oranges
Grapes
Apples
Beer and Malt
Lettuce
Prunes and Plums
Potatoes Frozen
Shell Eggs
Almonds
Wine

(All Figures in Metric Tons unless otherwise indicated)


Narrative:

Hong Kong is the largest export market for U.S. poultry meats.  In 
particular, chicken wings and feet are used in traditional Chinese 
dishes and are extremely popular in this market.  Of the 291,029 MT of 
poultry exports, roughly 90% are exported to China through Shenzhen and 
Zhuhai, where tariffs are considerably lower.  This 90% includes many 
tons of poultry that are shipped unofficially.  Domestic production of 
poultry meat is decreasing as new environmental legislation from the 
government makes it difficult for chicken farms to stay open.  The Waste 
Disposal Bill, effective in 1996, will shut down many farms that cannot 
meet the new requirements.


POULTRY

                                 1994        1995        1996

Total Production                16,000      15,000       9,500
Total Exports*                 291,029     300,000     320,000
Total Imports                  533,436     640,000     700,000
Total Imports from U.S.        319,783     400,000     470,000

* Includes Re-exports


GINSENG

                                1994       1995       1996

Total Production                 N/A        N/A        N/A
Total Exports                    3,675      4,000      4,200
Total Imports                   32,305     34,000     35,000
Total Imports from U.S.            932      1,250      1,400


ORANGES

                               1994        1995         1996

Total Production                 N/A         N/A          N/A
Total Exports                 17,455      18,200      19,000
Total Imports                183,802     186,000     195,000
Total Imports from U.S.      124,933     120,000     130,000


GRAPES

                              1994        1995        1996

Total Production              N/A         N/A          N/A
Total Exports              10,210       11,000      12,500
Total Imports             398,863      400,000     410,000
Total Imports from U.S.    21,082       22,000      22,900


APPLES

                            1994       1995       1996

Total Production             N/A        N/A        N/A
Total Exports              16,770     20,000    22,000
Total Imports              85,930     90,000    92,300
Total Imports from U.S.    67,692     73,000    79,200


BEER & MALT (in Kilolitres)

                           1994        1995        1996

Total Production           N/A         N/A          N/A
Total Exports              82,906      90,000   110,000
Total Imports             173,966     180,000   182,000
Total Imports from U.S.    83,527      90,000    94,000


LETTUCE

                             1994      1995       1996

Total Production              N/A        N/A        N/A
Total Exports                 954      1,000      1,200
Total Imports              25,159     27,000     28,500
Total Imports from U.S.    20,978     21,000     22,000


PRUNES AND PLUMS

                           1994       1995      1996

Total Production           N/A        N/A        N/A
Total Exports             1,025      1,200     1,350
Total Imports            14,546     15,000    15,400
Total Imports from U.S.  10,503     10,200    11,000


FROZEN POTATOES

                          1994       1995       1996

Total Production          N/A        N/A         N/A
Total Exports                 20         50       70
Total Imports             17,670     19,300   21,100
Total Imports from U.S.   13,734     16,460   18,000


SHELL EGGS

                             1994            1995            1996

Total Production              N/A            N/A              N/A
Total Exports                 414            500              520
Total Imports           1,247,262      1,300,000        1,320,000
Total Imports from U.S.    42,266         44,600           50,000


WINE (KiLolitres)

                            1994           1995           1996

Total Production             N/A            N/A            N/A
Total Exports                393            420            500
Total Imports              4,517          5,000          5,200
Total Imports from U.S.      788            800            980


ALMONDS

                           1994           1995            1996

Total Production           N/A            N/A              N/A
Total Exports              2,081          2,300          2,500
Total Imports              3,721          4,000          4,800
Total Imports from U.S.    2,972          3,200          3,850



                  CHAPTER VI.  TRADE REGULATIONS AND STANDARDS

A.  Trade Barriers, Including Tariffs, Non-Tariffs Barriers and Import 
Taxes

     The Hong Kong Government levies no import tariffs.  However, 
domestic consumption taxes (referred to as duties in Hong Kong) are 
imposed on certain goods, including tobacco (including cigarettes), 
alcoholic beverages, methyl alcohol and some fuels.  These taxes are 
levied equally on local manufactures and imports.  In addition, a steep 
tax, called a "First Registration Tax," which ranges from 40 - 60% of 
the price, is levied on new car purchases.

     Useful contact for inquiring about specific products:

          Customs and Excise Department
          8/F, Harbor Building, 38 Pier Road
          Central, Hong Kong
          Tel:  (852) 2852-3324
          Fax:  (852) 2541-9827 (Dutiable Commodities Division)


B.  Customs Valuation

     Customs valuation is only an issue for the taxable items listed in 
VI A above.  The tax on tobacco is by volume.  The tax on distilled 
spirits is 100%, on wine is 90% and on beer is 30%.  The tax on 
petroleum products is by both volume and value.  The value is based on 
the bill of lading as long as it represents a reasonable market value.  
The tax on automobiles is based on both retail price and engine size.


C.  Import Licenses

     Textiles are subject to import and export licensing because of the 
territory's obligations under agreements with the U.S. and other 
countries.  Importers of "Reserved Commodities" which include rice and 
frozen meat must obtain an importer's license before they can import 
these commodities.  Frozen/chilled meat imports must be accompanied by 
appropriate health certificates issued by a recognized authority of the 
country of origin.  Plant and animal imports must be accompanied by 
appropriate phytosanitary health certificates.  Quarantine is required 
for both livestock and pets.


D.  Export Controls

     The Hong Kong Government imposes restrictions on the export of 
high-technology products to countries proscribed under the former COCOM 
regime, such as the People's Republic of China.  Restrictions on trade 
with China were relaxed significantly by the United States in 1991, 
allowing Hong Kong to re-export to the PRC on a more liberal basis.  
Textiles are subject to import and export licensing because of the 
territory's obligations under agreements with the USA and other 
countries.


E.  Import/Export Documentation

     U.S. standard trade documentation is acceptable.


F.  Temporary Entry

     There are no problems, as there are no duties which need to be 
waived.


G.  Labeling, Marking Requirements

     Non-tariff barriers such as labeling requirements, standards, etc.  
are also virtually nonexistent.


H.  Prohibited Imports

     The import of munitions, firearms and fireworks is strictly 
forbidden.


I.  Standards

     Few product safety standards are required for the domestic Hong 
Kong market.  What little there are relate to fire control (gas and 
electricity) in the city's high rise buildings.  Other standards of 
quality and safety control imposed on domestic manufacturers are for 
goods made for export or re-export outside the territory.  It is fairly 
safe to assume, therefore, that industrial or retail products built to 
American standards will have no problem selling in Hong Kong.

     Another guideline to use regarding quality control is the "ISO 
9000" series, published by the International Organization for 
Standardization (ISO).  These standards, now in the process of being 
adopted in Hong Kong via the Hong Kong Quality Assurance Agency, provide 
a framework for all types of manufacturing industries.  The local 
Housing Authority has also adopted ISO 9000 for all of its 
consultants/contractors, and the Works Branch is considering extending 
ISO 9000 to engineering and architectural consultants by April 1, 1996.  
The Provisional Airport Authority also requires suppliers and 
contractors to conform to ISO 9000.


J.  Free Trade Zones/Warehouses

     There are no special zones since the whole territory is basically a 
free trade zone.


K.  Special Import Provisions

     None


L.  Membership in Free Trade Arrangements

     Hong Kong has been a GATT member in good standing, and is a 
founding member of the WTO.



              CHAPTER VII.    INVESTMENT CLIMATE

A.  Openness to Foreign Investment 

     Hong Kong pursues a free market philosophy with minimum 
interference with corporate initiative.  The territory welcomes foreign 
investment.  It offers no special incentives nor does it impose 
disincentives for foreign investors.  Hong Kong's well established rule 
of law is applied consistently and without discrimination.  There is no 
distinction in law or practice between investments by foreign-controlled 
companies and those controlled by local interests.  The Independent 
Commission Against Corruption, created in 1974, is responsible for 
investigating corruption.

     There are no direct subsidies to domestic industries and, as a duty 
free port, no tariff barriers.  There is no discrimination against 
foreign investors either at the time of initial investment or 
afterwards. There is no capital gains tax nor are there withholding 
taxes on dividends and royalties. Profits can be freely converted and 
remitted.  Foreign-owned and domestically owned firms are taxed at the 
same rate, 16.5% of profits. There are no preferential or discriminatory 
export and import policies which affect foreign investors.    

     There are no disincentives to foreign investment such as 
limitations on the use or transfer of foreign currency, or any system of 
quotas, performance requirements, bonds, deposits, or other similar 
regulations.  No laws per se regulate acquisition and takeover 
activities, and there is no antitrust law.  However, the Hong Kong Code 
on Takeovers and Mergers (1981) sets out general principles for 
acceptable standards of commercial behavior. 

     With few exceptions, the Hong Kong government does not attempt to 
limit the activities of foreign investors either in specified projects 
or sectors.  Foreign investment in Hong Kong flows freely into the 
industrial sector as well as into services, franchises, restaurants, the 
entertainment industry, and the ownership of property, both residential 
and commercial.  There are certain exceptions as indicated below:

     Foreign ownership of local broadcasting stations or cable operators 
may not exceed 49%.

     U.S. trained doctors, nurses and psychiatrists face burdensome 
licensure requirements in order to practice medicine.

     Foreign lawyers are not allowed to practice Hong Kong law;  foreign 
law firms may now hire local lawyers, which allows them to become "full 
service" firms.  However, there are still impediments and disadvantages 
a foreign law firm faces in trying to compete in the Hong Kong market.
     
     In September 1994, a one-branch restriction on overseas banks 
licensed after 1978 was relaxed.  Overseas banks are now permitted to 
set up one regional office and one back office, in separate buildings, 
to conduct such activities as strategic planning, general liaison with 
correspondent banks and corporate entities, and processing and 
settlement of transactions already entered into by the branch office. 
Moreover, foreign banks may acquire a controlling interest in a local 
bank that has unlimited branching rights.

     Foreign firms and individuals are freely allowed to incorporate 
their operations in Hong Kong, to register branches of foreign 
operations, and to set up representative offices without discrimination 
or undue regulation.  There is no restriction on the ownership of such 
operations.  Company directors are not required to be citizens of, or 
resident in Hong Kong.  Reporting requirements are straightforward and 
not onerous.

     Hong Kong's extensive body of commercial and company law generally 
follows that of England and Wales, including the common law and rules of 
equity.  Most statutory law is made locally.  The local court system 
provides for effective enforcement of contracts, dispute settlement and 
protection of rights, including intellectual property.  Hong Kong is a 
member of the World Trade Organization in its own right as a separate 
customs territory -- a status it will retain after reversion to Chinese 
sovereignty in 1997.

     Formalities are minimal for company incorporation and business 
registration.  Foreign and domestic companies register under the same 
rules and are subject to the same set of business regulations. 
Regulations governing the relative degree of local participation in 
ownership apply in broadcasting.  

     The Hong Kong Government's Industry Department encourages inward 
investment as a means to introduce new or improved products, processes, 
designs and management techniques.  U.S. and other foreign firms can 
participate in government financed and subsidized research and 
development programs on a national treatment basis.

B.  Conversion and Transfer Policies

     There are no restrictions on conversion and inward or outward 
transfer of funds for any purpose.  The HK dollar is a freely 
convertible currency that, since late 1983, has been linked to the U.S. 
dollar at an exchange rate of HK$7.8 = US$1.  Authorities are committed 
to exchange rate stability through maintenance of the linked rate.  
There is no allocation of foreign exchange; reserves at the end of 1994 
totaled US$49.7 billion.

C.  Expropriation and Compensation

     Post is aware of no expropriation actions in the recent past.  
However, expropriations of private property may occur if it is clearly 
in the public interest, but only for well-defined purposes such as 
implementation of public works projects. If this is the case, then 
expropriations should be conducted through negotiations, and then, in a 
nondiscriminatory manner in accordance with established principles of 
international law.  Due process and transparency of purposes are 
observed.  Investors in and lenders to expropriated entities receive 
prompt, adequate, and effective compensation.  

     Property may be acquired under the Crown Land Resumption Ordinance, 
the Land Acquisition Ordinance, the Mass Transit Railway (Land 
Resumption and Related Provisions) Ordinance or the Roads Ordinance.  
These ordinances provide for payment of compensation.  If agreement 
cannot be reached on the amount payable, either party can refer the 
claim to the Land Tribunal for jurisdiction.

D.  Dispute Settlement

     Post is aware of no investor-state disputes in recent years 
involving U.S. or other foreign investors or contractors and the Hong 
Kong Government. Private investment disputes are normally handled in the 
courts or via private negotiation. Alternatively, disputes may be 
referred to the Hong Kong International Arbitration Center.  

     The Hong Kong Government accepts international arbitration of 
investment disputes between itself and investors.  Via the United 
Kingdom, Hong Kong is a member of both the International Center for the 
Settlement of Investment Disputes (ICSID, the Washington Convention) and 
the New York Convention of 1958 on the Recognition and Enforcement of 
Foreign Arbitral Awards.  The local court system provides effective 
enforcement of contracts, dispute settlements and protection of rights, 
including intellectual property.  Secured interests in property are 
recognized and enforced.

     Hong Kong's legal system is firmly based on the rule of law and the 
independence of the judiciary.  Courts of justice in Hong Kong include 
the Supreme Court, which comprises the Court of Appeal and the High 
Court, the District Court, the Magistrate's Court, the Coroner's Court 
and the Juvenile Court.  There is also a Lands Tribunal, Labor Tribunal, 
and other statutory tribunals.  Pursuant to the Sino-British Joint 
Declaration, the power of final judgment in the HKSAR shall be vested in 
a five-member Court of Final Appeal.

     The Hong Kong Government owns all land in the territory.  When land 
is sold, it is done by way of granting a long-term lease, not by 
transfer of freehold title. Local and foreign leaseholders are given 
equal treatment.  Under the Joint Declaration, rights under existing 
leases will be protected.  Up until June 30, 1997, the Hong Kong 
Government may continue to create new leases which can run until 2047.

E.  Political Violence

     Hong Kong is economically stable and secure.  The territory enjoys 
an enviable reputation for tranquility.  The Consulate General is not 
aware of any incidents over the past few years involving politically 
motivated damage to projects or installations.  There has been no major 
unrest in the territory since the 1967 Cultural Revolution spilled 
across the border.    

F.  Performance Requirements/Incentives

     Consistent with its generally laissez faire economic philosophy, 
Hong Kong imposes no export performance or local content requirements as 
a condition for establishing, maintaining or expanding a foreign 
investment.  Hong Kong offers no special privileges to attract foreign 
investment.  There are no requirements that Hong Kong residents own 
shares, that foreign equity be reduced over time, or that technology be 
transferred on certain terms.  Such matters are left to the market.

G.  Right to Private Ownership and Establishment

     Hong Kong law and regulations provide for the right of foreign and 
domestic private entities to establish, own and to dispose of interests 
of business enterprises.  Foreign investors are generally allowed to 
engage in all lawful forms of remunerative activity.  Restrictions on 
the latter involve regulated entry of practice in the mass transit, 
electric power generation, medical services, legal, telecommunications 
and broadcasting sectors. The Hong Kong Government does not generally 
engage directly in business activity via public enterprises, preferring 
to leave this to the private sector.  In general, business privileges, 
franchises and land development rights are granted on the basis of 
competitive equality. 

H.  Protection of Property Rights

     The territory's commercial and company laws provide for effective 
enforcement of contracts and protection of corporate rights. The 
Intellectual Property Department, which includes the Trademarks and 
Patents Registries, is the focal point for the development of Hong 
Kong's intellectual property regime.  The Customs and Excise Department 
is the principal enforcement agency for intellectual property rights. 

     Hong Kong has acceded to the Paris Convention for the Protection of 
Industrial Property, the Bern Convention for the Protection of Literary 
and Artistic Works, and the Geneva and Paris Universal Copyright 
Conventions. Hong Kong has developed comprehensive laws covering 
trademarks, trade descriptions, copyrights, industrial designs and 
patents. Hong Kong's patent and copyright laws are currently dependent 
on the United Kingdom.  The Registration of Patent Ordinance provides 
for the registration of U.K. patents with the Hong Kong Registrar of 
Patents.  Patent protection extends as long as the original patent in 
the U.K.  Hong Kong provides full patent protection for chemical 
compounds and foodstuffs.  There are no restrictions on the licensing of 
patents, nor is licensing compulsory. 

     After conducting a comprehensive review of copyright law at the 
request of the Hong Kong Government, the Law Reform Commission in 
January 1994 released to the Hong Kong Government its recommendations 
for updating Hong Kong's copyright and design law in line with 
international developments and for localizing appropriate provisions to 
reflect Hong Kong's transfer of sovereignty in 1997.  The Hong Kong 
Government plans that English statute law which applies to Hong Kong 
will be replaced by Hong Kong enactments.

     Copyrights are protected under the U.K. Copyright Act and the Hong 
Kong Copyright Ordinance.  Foreign works are protected provided 
ownership is vested in a country which is a signatory to one of the 
international conventions.  There is no need to register a copyright; 
protection under the Copyright Ordinance is automatic.  Three-
dimensional representations of two-dimensional works are protected as 
are registered designs.  In March 1994, legislation was enacted to 
provide specific statutory protection for the layout-designs 
(topographies) of integrated circuits. Most of the provisions of the 
bill are based on similar legislation in the U.K. and Australia.  The 
bill also meets standards set out in the Treaty on Intellectual Property 
in Respect of Integrated Circuits (The Washington Treaty 1989) and the 
agreement on Trade Related Aspects of Intellectual Property Rights 
(TRIPS). 

     All trademark registrations originally filed in Hong Kong are valid 
for seven years and renewable for 14-year periods.  Proprietors of 
trademarks registered elsewhere must apply anew and satisfy all 
requirements of Hong Kong law.  When evidence of use is required, such 
use must have been in Hong Kong.  Trademarks are registered under the 
Trademarks Ordinance, with provisions similar to trademarks legislation 
in the United Kingdom.  The Trademarks (Amendment) Ordinance, which came 
into effect in 1992, extends the trademarks law to allow for 
registration of trademarks relating to services.

     The Patent Registry registers patents that have been granted in the 
United Kingdom and European Patents registered in the United Kingdom.

     Hong Kong has no specific ordinance to cover trade secrets.  Under 
the Trade Description Ordinance, however, the government has the duty to 
protect the information being disclosed to other parties.  The Trade 
Description Ordinance prohibits false trade descriptions, forged trade 
marks and misstatements in respect of goods supplied in the course of 
trade.  

     The Customs and Excise Department is responsible for the 
enforcement of protection for intellectual property rights.  The 
Department has a special IPR unit with over 100 investigators.  In 
addition to conducting raids on local establishments and street vendors, 
this unit works closely with the Hong Kong Government anti-smuggling 
task force to combat suspected smuggling operations.  For 1994, there 
were 1302 court cases involving copyright violations and a total of 
HK$29.47 million (US$3.7 million) worth of goods seized.  1,041 cases 
involving trademark violations and trade description counterfeiting were 
heard in court in the same year and a total of HK$214 million (US$27.6 
million) were seized.  

     Most pirate manufacturers have been driven out of Hong Kong in the 
past several years.  However, many have since re-established operations 
across the border in south China.  Despite numerous seizures of pirate 
goods in Hong Kong and at the PRC-Hong Kong border, customs officials 
are fighting an uphill battle.  Software piracy continues to be a 
serious problem in Hong Kong, as does compact disc music piracy.  The 
Hong Kong Government's enactment of substantially stiffer penalties in 
1995 should help to deter retailers from carrying pirate products.

I.  Regulatory System:  Laws and Procedures

     Hong Kong's body of law and regulation implicitly and explicitly 
promotes competition in all forms of economic endeavor.  The only 
exceptions are those previously mentioned, where entry is restricted.  
Tax, labor, health and safety and other laws and policies avoid 
distortions or impediments to the efficient mobilization and allocation 
of investment.  Bureaucratic procedures and "red tape" are held to the 
minimum and are equally transparent to local and foreign investors.  
While Hong Kong's pro-business approach is almost universally applauded, 
the lack of any anti-trust enforcement powers may act to curb 
competition in some sectors.


J.  Bilateral Investment Agreements

     Hong Kong is negotiating a series of bilateral investment 
agreements -- the Hong Kong Government calls them "Investment Promotion 
and Protection Agreements" -- with major foreign investors.  To date, 
Hong Kong has signed agreements with Australia, Switzerland, the 
Netherlands, Denmark, Sweden and New Zealand.  The Hong Kong Government 
has initialed agreements with Canada, Italy, France, Germany, Austria, 
Belgium, and Vietnam.  It is negotiating agreements with other 
investment partners in the Asia/Pacific region.  All such agreements 
have been based on a model text approved by the PRC through the Sino-
British Joint Liaison Group.  The United States and Hong Kong held a 
first round of negotiations on a bilateral investment treaty; however, 
progress has been limited over questions of format and substance.

K.  OPIC and Other Investment Insurance Programs

     OPIC coverage is not available in Hong Kong.  Hong Kong is a member 
of the Multilateral Investment Guarantee Agency (MIGA).  Its membership 
will continue after the territory reverts to Chinese sovereignty in 
1997.

L.  Labor

     For most of the last decade, Hong Kong's unemployment rate hovered 
around 2% as the economy continued a rapid structural transformation 
from manufacturing to a financial and services center.  The burgeoning 
services sector easily absorbed displaced manufacturing workers.  
     
     With the recent slowdown in retail sales and restaurant receipts, 
the unemployment rate in the first four months of 1995 rose to 3%, the 
highest rate in nine years.  As part of a package of measures introduced 
in June 1995 to combat rising unemployment, the Hong Kong Government 
will review its labor importation schemes by October.  In the interim, 
in response to union and pro-labor legislators, it stopped new quota 
approvals under three labor importation programs:  1) the General 
Importation of Labor Scheme for skilled and semi- skilled workers (which 
has a quota of 25,000 workers), 2) construction workers for the Chek Lap 
Kok airport and related infrastructure projects (with a quota of 
17,000), and 3) a separate 1,000-worker quota scheme for mainland 
professionals.  Qualified foreign professionals, technical staff, 
administrators and managerial personnel are not affected, nor are 
foreign domestic helpers.

     Labor-management relations are generally smooth.  The average 
number of days lost due to industrial conflicts is one of the lowest in 
the world.  In 1992, the latest year for which statistics are available, 
membership in Hong Kong's 522 unions totaled  542,700, for a 
participation rate of about 21%.  Hong Kong has implemented 29 
conventions of the International Labor Organization in full and 19 
others with modifications.  The PRC maintains that Hong Kong will 
continue to adhere to these conventions after 1997.  

M.  Foreign Trade Zones/Free Ports

     All of Hong Kong is a duty-free zone, as the territory is a free 
port.  Subject to nondiscriminatory application of excise taxes and 
restricted entry in some sectors, as noted above (e.g. broadcasting, 
electric power, telecommunications), local and foreign firms are free to 
take advantage of investment opportunities in the territory.

N.  Capital Outflow Policy
     
     Hong Kong has no restrictions on capital outflows nor does it 
maintain incentives for investment outside the territory.

O  Efficient Capital Markets and Portfolio Investment

     There are no impediments to the free flow of financial resources.  
Laissez faire economic policies, complete freedom of capital movement 
and a well-understood regulatory and legal environment have greatly 
facilitated Hong Kong's growing role as a regional and international 
financial center.  At year-end 1994, eighty five of the world's top 100 
banks operated in Hong Kong.  There were 148 foreign incorporated banks 
operating in the territory.  Moreover, 155 subsidiaries or related 
companies of foreign banks operated as restricted license banks and 
deposit-taking companies.  Forty-four U.S. financial institutions 
maintain operations in Hong Kong.  U.S. banks licensed in Hong Kong are 
listed in Appendix E(f) below.  Most banks in Hong Kong maintain U.S. 
correspondent relationships. 

     Hong Kong's five largest banks and their assets are as follows:

                             Total Assets
Rank     Institution         (US$ millions)

1     Hong Kong & Shanghai           145,073
      Banking Corporation (HSBC)
2     Hang Seng Bank Ltd.             35,798
3     Bank of East Asia, Ltd.         10,310
4     Dao Heng Bank                    8,596
5     Nan Yang Commercial Bank         7,732

  Source:  KPMG Peat Marwick Banking Survey Report 1994-95
     
     Hong Kong has a three-tier system of deposit-taking institutions:  
licensed banks, restricted license banks and deposit-taking companies.  
Only licensed banks can offer current (checking) or savings accounts.  
The Hong Kong & Shanghai Banking Corporation (HSBC) is the territory's 
largest banking group.  With its majority-owned subsidiary Hang Seng 
Bank, and 340 branches, the group controls more than 40% of Hong Kong 
dollar deposits.

     Credit is allocated strictly on market terms and is available to 
foreign investors on a nondiscriminatory basis.  The private sector has 
access to the full spectrum of credit instruments as provided by Hong 
Kong's banking and financial system.  Legal, regulatory, and accounting 
systems are transparent and consistent with international norms.  The 
Hong Kong Monetary Authority (HKMA) functions as the territory's de 
facto central bank.  The HKMA is responsible for maintaining the 
stability of the banking system and managing the Exchange Fund backing 
Hong Kong's currency -- linked to the U.S. dollar at HK$7.8 = US$1.    

     Stock and Futures Markets:  With a total capitalization of 
US$269.72 billion and 529 listed firms at year-end 1994, the Stock 
Exchange of Hong Kong (SEHK) was ranked eighth in the world in terms of 
capitalization and eleventh in trading volume. 

     There are no discriminatory legal constraints to foreign securities 
firms establishing in Hong Kong via branching, acquisition, or 
establishing subsidiaries.  In practice, foreign firms typically 
establish in Hong Kong as subsidiaries.  Rules governing operations are 
the same, irrespective of ownership.  There are no restrictions on 
cross-border capital flows.

     The SEHK plays a significant role in raising capital for PRC state-
owned enterprises.  A memorandum of understanding on regulatory 
cooperation between PRC and Hong Kong stock and regulatory authorities 
signed in June 1993 provides a framework for Chinese state enterprises 
to raise equity in Hong Kong provided they meet Hong Kong regulatory and 
accounting requirements.  "H" shares are denominated in renminbi, but 
must be purchased in Hong Kong dollars.  At year-end 1994, a total of 
fifteen Chinese enterprises had raised US$2.14 billion through "H" share 
listings on the SEHK.  Several more from a group of 22 PRC enterprises 
approved to list overseas will likely apply for primary listing status 
in Hong Kong.

     The Hong Kong Futures Exchange Ltd. provides a market for Hang Seng 
Index futures and options.  In April 1995, it launched two local stock 
futures contracts for HSBC Holdings, PLC and Hong Kong 
Telecommunications Ltd.  

     The Securities and Futures Commission, an independent statutory 
body outside the civil service, has licensing and supervisory powers to 
ensure the integrity of markets and to protect investors.  (More 
detailed information on Hong Kong's securities markets is contained in 
the Department of the Treasury's December 1994 National Treatment 
Study.)

     Portfolio investment decisions are left to the private sector.  
Cross shareholding agreements have been used by at least one large Hong 
Kong firm.  In this well publicized case, the cross shareholding 
agreement was implemented to stabilize control of its majority 
shareholders and protect against all hostile takeovers, not primarily 
foreign hostile takeovers.  There are no laws or regulations that 
specifically authorize private firms to adopt articles of 
incorporation/association which limit or prohibit foreign investment, 
participation or control.  
     

P.  Major Foreign Investors /1/

     United States:  Motorola, Digital Equipment Corp., Sea-land, Exxon, 
Citibank, Caltex, AT&T, IBM, Kodak, Bank of America, Dun and Bradstreet, 
American International Group, Coca-Cola, Pepsi-Co. 

     Japan:  Kumagai Gumi, Yaohan, Jusco, Daimaru, Mitsubishi, Uny, 
Nishimatsu, Seibu, Daido Concrete, C. Itoh.

     United Kingdom:  Inchcape Pacific, Cable and Wireless, Hong Kong 
and Shanghai Banking Corporation, Standard Chartered Bank, Jardine 
Matheson, Swire Pacific Group, P & O Shipping.

     West Europe: Carlsberg (Denmark), Hong Kong Petrochemicals 
(Italian/Korean/Chinese joint venture), Siemens, Heraeus (Germany), 
Philips (Netherlands); Bouygues/Dragages, Bachy-Soletanches, Banque 
National de Paris, Banque Indosuez, Chanel, Cartier, Christian Dior, 
Remy (France), Erikson, Asea Brown Boveri, Tetrapak, Electrolux 
(Sweden).

     China:  China Investment and Trust Corporation (CITIC), China 
Resources, China Merchants, Bank of China, China Travel Services, China 
Overseas Construction, Guangdong Enterprises, Yue Xiu Enterprises, China 
Everbright.

     Asia:  San Miguel Brewery (Philippines), News Corp., Pioneer 
(Australia), Sime Darby, Shangri-la/Kerry Trading (Malaysia), Park View 
Properties (Taiwan), Lippo Group (Indonesia), C.P. Pokphand, Chai Thai 
(Thailand).


/1/NOTE:  This list is not in rank order nor is it comprehensive as Hong 
Kong does not register foreign investment. 



                  CHAPTER VIII.  TRADE AND PROJECT FINANCING

A.  Brief Description of Banking System
Hong Kong has an open financial system, with no controls on currency 
movements.  A more complete description is contained in VII (O)  

B.  Foreign Exchange Controls affecting trading
The local currency, the Hong Kong Dollar (HK$), is freely convertible 
and there are no foreign exchange controls.

C.  General Financing Availability
Commercial trade financing is readily available in Hong Kong for 
qualified customers.  Bank loans have been increasing at double digit 
rates over the past five years.  All licensed banks are authorized to 
provide loans to residents and non-residents in the currency of their 
choice.  Letters of credit and other financial instruments are widely 
used to protect participants in trade arrangements.  All banks maintain 
close working relationships with correspondent banking institutions.  
The financial system is highly developed and efficient.

D.  How to Finance Exports/Methods of Payment
The preferred method of quoting is "CIF" or "C and F" in HK$.  The U.S. 
dollar and other freely convertible currencies may be accepted for bids 
and pro forma invoicing.  Terms of payment depend on the relative 
negotiating strength of the buyers and sellers.  U.S. suppliers should 
seek to obtain letters of credit or sight draft terms when dealing with 
buyers who are not well known to them.  Asking for a letter of credit is 
a standard business practice, and your potential customer will not 
interpret this as a sign of mistrust.

The importance of trade finance to the territory has resulted in a high 
level of bank efficiency in providing import payment services.  Letters 
of credit, document collection and international remittance are widely 
available.  All licensed banks are authorized to provide loans to 
residents and nonresidents.  Risk of financing receivables can be 
readily evaluated via locally available credit information.  Prospective 
exporters should make use of banking relationships to determine credit 
risk.

E.  Types of Available Export Financing and Insurance
The U.S. ExIm Bank offers both trade financing and insurance for U.S. 
exports.  Commercial vendors are also readily available.

F.  Project Financing Availability
Hong Kong is not a recipient of official development assistance.  
Projects are financed on commercial terms.  U.S. Trade and Development 
Agency programs are available for Hong Kong.  Hong Kong is also a major 
center for commercial project financing for China.

G.  List of Banks with Correspondent U.S. Banking Arrangements
The list of Hong Kong based banks with correspondent U.S. banking 
arrangements is too large to include here.  Appendix E(f) provides a 
list of U.S. banks licensed in Hong Kong.  Hong Kong's five largest 
local banks are indicated in Section VII (O), above. 



                 CHAPTER IX.     BUSINESS TRAVEL

A.   Business Customs
     Over the years, Hong Kong has developed as a unique society based 
on Chinese tradition and western technology.  It is a society which 
practices religious and racial tolerance.  Above all, it is a society 
that emphasizes hard work and success.

     Americans encounter few if any cultural problems when conducting 
business in Hong Kong.  Americans should be aware that Hong Kong people 
tend to be more formal than many Americans.  Business acquaintances are 
addressed as Mr. or Ms. unless they state that their first name should 
be used.  Business cards are exchanged frequently and the exchange 
should be fairly formal: the card should be accepted with both hands and 
a moment taken to read it carefully.  "Face" is very important, and 
problems or areas of disagreement are handled indirectly to avoid loss 
of "face."  While a study of local customs and practices may be helpful, 
most people in Hong Kong are sufficiently familiar with Western customs 
that they are tolerant of cultural differences.  Business contacts 
should be treated the same as a formal business relationship in the U.S.  
Western business attire (suit and tie for men, business suits for women) 
is appropriate.

B.  Travel Advisory and Visas
     Visas allowing residence and local employment for expatriates are 
granted on the basis of simple, comprehensible procedures, are handled 
in a timely manner and managed in a way that is consistent with the 
interests of employees.  There are no quotas, bonds, or guarantees 
required.  All residents are equal under the law, enjoy freedom of 
movement, access to public education, and basic civil freedoms.

     Visiting Americans generally fit in well.  Most Hong Kong business 
executives speak excellent English, and are accustomed to dealing with 
Westerners.  

C.  Holidays

     1995

     August 28        Liberation Day
     November 1       Chung Yeung Festival
     December 25      Christmas Day
     December 26      First week-day after Christmas Day


     1996

     January 1        First week-day after New Year's Day
     February 19      Lunar New Year's Day
     February 20      The second day of Lunar New Year
     February 21      The third day of Lunar New Year
     April 4          Ching Ming Festival
     April 5          Good Friday
     April 6          The day following Good Friday
     April 8          Easter Monday
     June 15          The Birthday of Her Majesty the Queen
     June 17          The Monday following the Queen's Birthday
     June 20          Dragon Boat Festival
     August 24        The Saturday preceding the last Monday in August
     August 26        Liberation Day, being the last Monday in August
     September 28     The day following the Chinese Mid-Autumn Festival
     October 21       The day following Chung Yeung Festival
     December 25      Christmas Day
     December 26      First week-day after Christmas Day

D.  Business Infrastructure (eg. transportation, language, 
communications, housing, health, food)

     Housing, food, telecommunications, transportation and healthcare 
are all available at levels comparable to major American cities.  Hong 
Kong is one of the most expensive cities in the world, especially for 
housing, but it is also a very efficient city making it possible to 
accomplish a great deal in a short time.

     Your business partners will almost always speak English, and will 
negotiate on a very business-like basis.



                     CHAPTER X.     APPENDICES

APPENDIX A -- COUNTRY DATA

a.  Population:  6.06 million (mid-year 1995)
b.  Population Growth Rate:  2.4%
c.  Religion(s):  Buddhist, Taoist, Christian, small numbers of Moslems, 
Hindus, Jews, and Sikhs.
d.  Government System:  Colonial administration by the United Kingdom; 
territory reverts to Chinese sovereignty July 1, 1997.
e.  Language(s):  English and Cantonese are the languages of 
administration and commerce.  Mandarin Chinese is becoming increasingly 
common.
f.  Work Week:  Business hours are 9 to 5, Monday through Friday. 
Saturday has traditionally been a half day but, due to the competition 
to keep staff, many companies now advertise a 5 day workweek.

APPENDIX B -- DOMESTIC ECONOMY

                                (US$ Millions, unless otherwise noted)
                                            (Projected)     (Projected)
                                   1994        1995             1996

a.  GDP (current)                 131,855     149,655     164,001
b.  Real GDP Growth                   5.5         5.5         5.4
c.  GDP Per Capita (dollars)
   (current prices)                21,750      24,100      26,343
d.  Government Spending
    as % of GDP (FY)                 16.8        17.6        17.5
e.  Inflation (%)                     8.5         9.0         8.7
f.  Unemployment (%)                  2.0         2.9         3.3
g.  Foreign Exchange Reserves      49,276      54,000      59,000
h.  Average Exchange Rate
    for US$1.00                     7.728       7.728       7.730
i.  Debt Service Ratio*               N/A         N/A         N/A
j.  U.S. Military/Economic Assistance N/A         N/A         N/A

Source:  1994:  Hong Kong Government
         1995 and 1996 are unofficial U.S. Consulate General projections

* Hong Kong has no foreign debt.

APPENDIX C -- TRADE

                                (US$ Millions, unless otherwise noted)
                                             (Projected)     (Projected)
                                      1994       1995        1996

a.    Total Country Exports
      Total Exports
      (including re-exports)        151,399     172,443     189,331
      of which: Domestic Exports     21,965

b.     Total Country Imports
     Total Imports                  162,322     183,910     203,460
     of which:  Retained Imports     71,590


c.     U.S. Exports
     U.S. Exports to Hong Kong       11,561      12,948      14,255


d.     U.S. Imports
     Hong Kong Exports to the U.S.
          (domestic exports)           7,948       8,106       7,947
          (re-exports)                27,184      31,805      35,910


e.     U.S. Share of Host-country
     Imports (%)                             7.1         7.1         7.4


Note 1:  Projections for 1995 and 1996 are unofficial U.S. Consulate 
General Estimates

Note 2:  The above statistics are based on official Hong Kong Government 
trade statistics.  U.S. Department of Commerce statistics show U.S. 
exports to Hong Kong in 1994 of $11.5 billion, and imports from Hong 
Kong of $9.7 billion.

Source:  Hong Kong Government Census and Statistics Department


f.  Trade Balances with Three Leading Partners in US$ Millions.*

                                         1993        1994
     China                              -8,303     -11,262
     Japan                             -16,055     -16,800
     USA                                -2,472      -3,313

* Domestic Exports minus Imports (Imports include both retained and non-
retained imports).

Source:  Hong Kong Government

g.  Principal U.S. Exports (five)
    (by tariff line item in US$ Millions)
                                                 1994          1995*
     HS 8542 - Electronic Integrated Circuits    1,355          384
     HS 7108 - Gold                                825          222
     HS 8471 - Automatic Data Process Machines     485          121
     HS 7102 - Diamonds                            406          125
     HS 8703 - Motor Cars & Vehicles               356          117


h.  Principal U.S. Imports (five)
     (by tariff line item in Million US$)
     HS 6110 - Sweaters                         1,062          168
     HS 6204 - Women's or Girls' Suits            710          200
     HS 8542 - Electronic Integrated Circuits     616          176
     HS 8473 - Office Machinery                   433           89
     HS 6205 - Men's or Boys' Suits               375           80


* Remark: 1995 - Data from January to March.

Source: U.S. Government Statistics


g.  Agricultural Trade
                                              (Projected)  (Projected)
                                        1994      1995       1996
1.     Total Exports                     4,400   5,000      5,200
2.     Total Imports                     9,000   9,200      9,350
3.     Exports to the U.S.                 420     450        480
4.     Imports from the U.S.             1,700   1,970      2,210
5.     U.S. Share of Host-country
       Imports (%)                          17      16         18
6.     U.S. Products Projected
     Growth Rate (%)                         7       9         11
7.     Agricultural Goods Trade
     Balance with U.S.                  -1,280   -1,100    -1,300



APPENDIX D -- FOREIGN INVESTMENT STATISTICS


     TABLE 1

     Overseas Investment in Hong Kong
     Manufacturing Number, Cumulative Values, and Employment in 1993
     (Major Source Countries)
                   Number of          Investment        Number of
Country            Investments        (US$ Million)     Employees

Japan               147               1,788               19,292
U.S.A.               89               1,474               18,499
China                37                 565                6,099
Netherlands          12                 213                9,319
U.K.                 46                 200                4,231
Switzerland          23                 169                3,076
Singapore            20                  79                2,567
Others              133                 653                3,239
                    ---               -----               ------

TOTAL               507               5,141               66,322

Source:  Tables 1-6, 1994 Survey of Overseas Investment in Hong Kong's 
Manufacturing Industries, Hong Kong Government Industry Department.

Notes:  Investment refers to total investment at original cost which 
includes stock of fixed assets at original cost plus working capital.  
Exchange rate used US$1 = HK$7.8 

The Hong Kong Government gathers statistics on foreign direct investment 
only in the manufacturing sector.  Data for United States' total inward 
investment is from U.S. Department of Commerce statistics.  No official 
statistics are available on the amount of PRC investment in Hong Kong, 
estimated at between US$20 - US$25 billion at the end of 1994.

TABLE 2

Overseas Manufacturing Investment in Hong Kong
By Industry, 1991, 1992, and 1993

US$ Millions (%)

Industry                      1991           1992          1993
Electronics                1,429 (32)     1,510 (31)     1,582 (30.2)
Textiles and Clothing        410 (9)        530 (11)       505  (9.6)
Electrical Products          575 (13)       534 (11)       480  (9.2)
Chemical Products            225 (5)        277 (6)        447  (8.5)
Food and Beverages           215 (5)        335 (7)        361  (6.9)
Printing and Publishing      191 (4)        184 (4)        252  (4.8)
Transport Equipment          176 (4)        180 (4)        185  (3.5)
Watches and Clocks           138 (3)        190 (4)        163  (3.1)

Others                     1,068 (25)     1,076 (22)     1,267 (24.2)
                          ----------      ----------     ------------
TOTAL:                       4,427          4,816        5,242

Note:  Figures in parentheses denote percentage share of annual stock of 
investment.

TABLE 3

     U.S. Manufacturing Investment in Hong Kong
     By Industry
     US$ Millions (%)

Industry                    1991          1992             1993
Electronics               675 (54)        713 (54.6)      848 (57.5)
Electrical Products       183 (15)        194 (15)        123  (8.4)
Chemical Products         100 (8)         105 (8)         121  (8.2)
Metal Products             65 (5)          67 (5)          71  (4.8)
Textiles and Clothing      46 (4)          64 (5)         115  (7.8)
Paper Products             N/A             23 (1.8)        29  (1.9)
Plastic Products           18 (2)          21 (1.6)        24  (1.6)
Food and Beverages         N/A             19 (1.4)        19  (1.3)
Printing and Publishing    18 (2)          11 (1)             N/A
Jade and Jewelry         15 (1)           6 (0.6)        5   (0.3)
Others                     120 (9)          82 (6)       121   (8.2)
                           -------          ------         ---------

TOTAL                      1,240           1,305          1,476

TABLE 4

     Japanese Manufacturing Investment in Hong Kong
     by Industry
     US$ Millions (%)

Industry                   1991          1992     1993
Electronics               324 (26)       469 (32)     462 (25.8)
Electrical Products       204 (16)       241 (17)     292 (16.3)
Textiles and Clothing     115 (9)        121 (9)      155  (8.7)
Watches and Clocks        177 (14)        36 (10)     150  (8.4)
Photographic and
  Optical Goods            59 (5)         95 (7)       95  (5.3)
Printing and Publishing    82 (7)         59 (4)      100  (5.6)
Food and Beverages         N/A            53 (4)      114  (6.4)
Basic Metal                N/A            28 (2)       46  (2.6)
Chemical Products          N/A            N/A          22  (1.2)
Others                     289 (23)      209 (15)     353 (19.7)
                         --------       --------      ----------
TOTAL                     1,250          1,311          1,789


TABLE 5

     Chinese Manufacturing Investment in Hong Kong
     by Industry  US$ Millions (%)
Industry                       1991          1992     1993
Tobacco                         N/A           N/A       N/A
Transport Equipment        270 (56)        355 (67)     373 (65.9)
Electronics                 67 (14)         54 (10)      34  (6.1)
Textiles and Clothing       42  (9)          39 (7)         N/A
Metal Products               21 (4)          23 (4)         N/A
Electrical Products          12 (3)          14 (3)      17  (3.0)
Plastic Products             28 (6)          12 (2)      62 (11.1)
Chemical Products            10 (2)          10 (2)      39  (6.8)
Others                       32 (6)          27 (5)      40  (7.1)
                           --------        --------    -----------
TOTAL                       482             534          565


TABLE 6.    Dutch  Manufacturing Investment in Hong Kong
     by Industry  US$ Millions  (%)
Industry                      1993 
Electronics                 143 (67.8)
Electrical Products          52 (24.7)
Chemical Products            16  (7.5)
                            ----------
TOTAL                       211 (100)

Note: 1992 Dutch industrial investment statistics for Hong Kong not 
available.


TABLE 7.   Amount and Growth of U.S. Direct Investment in Hong Kong
     1992/93/94   US$ Millions
                                              % Change
Category                         1992     1993     1994     1994/93
Petroleum                         450     496       552     11.3
Manufacturing                   1,433   1,624     1,902     17.1
Wholesale                       2,804   3,370     4,209     24.9
Banking                           914   1,016     1,094      7.7
Financial/Insurance             2,335   2,781     3,013      8.3
Services                          312     414       698     68.6
Others                            483     475       517      8.8
                                -----   ------   ------   ------
TOTAL                          8,731   10,176    11,985     17.8


Note 1:     Breakdown of 1994 U.S. Foreign Overseas Investment in Hong 
Kong not available at time of publication.

Note 2:     U.S. Department of Commerce estimates total U.S. direct 
investment position in Hong Kong at historical cost (the book value of 
U.S. direct investors' equity in, and net outstanding loans to, their 
foreign affiliates) at year-end 1993 was US$10.5 billion.

Source:  Survey of Current Business June 1995.
         Direct Investment Positions on a Historical Costs Basis, 1994.
         Country and Industry Detail.


TABLE 8.  Japanese Direct Foreign Investment in Hong Kong
     Yearly Flows, 1990-1993, US$ Millions
                         Year          Amount
                         1990           1,785
                         1991             925
                         1992             735
                         1993           1,238
                         1994           1,133
                                       ------
Cumulative Total (since 1951)          13,151


Source:     Japan Ministry of Finance.   Figures are direct investment    
flows per Japanese Fiscal Year        (April 1 to March 31).


TABLE 9.  Japanese Direct Investment in Hong Kong
     Sectional Breakdown for 1990 and 1994 US$ Millions
     Sectors                    1990      1994
     Manufacturing              113.5     215
     Banking/Insurance          398       429
      Commerce                  752       180
     Services                   102        68
     Real Estate                348        53
     Transport                   31        37
     Others                      36       147
                              -------   -----
     TOTAL                    1,780.5   1,129

     Source:     Japanese Ministry of Finance.


TABLE 10.   Hong Kong Overseas Direct Investment 
                 in Selected Economies 1993-1994
                         US$ Millions
Destinations            1993 (Stock)     1994 (Stock)

Indonesia                  7,600          13,700
Thailand                   2,100          N/A
Malaysia                     780          N/A
Taiwan                     1,900          N/A
Vietnam                    1,200        1,600
United States              2,000          N/A

Source:     Recipient Government Statistics.


TABLE 11.  Hong Kong's Direct Investment in China 
                          US$ Billions
Hong Kong's        Hong Kong's Share      Hong Kong's
Pledged Foreign    in China's Total       Actual Direct
Direct Investment  Direct Investment      Investment
1990               3.8                    58 Percent          1.9
1991               7.2                    60 Percent          2.4
1992                40                    69 Percent          2.5
1993/1/             74                    66 Percent         17.2
1994                49                    60 Percent         20.0
1979-94            200                    60 Percent         60.0


Source:  PRC Ministry of Foreign Trade and Economic Cooperation.
         Hong Kong Government estimates.


APPENDIX E -- U.S. AND COUNTRY CONTACTS


a.  U.S. Consulate General Trade-Related Contacts

Foreign Commercial Service -- Hong Kong

Sr. Commercial Officer   David Katz               U.S. Consulate General
                         Tel: (852) 2521-1467     26 Garden Road
                         Fax: (852) 2845-9800     Hong Kong

Commercial Officer       Ira Kasoff               U.S. Consulate General
                         Tel: (852) 2521-1467     26 Garden Road
                         Fax: (852) 2845-9800     Hong Kong

Commercial Officer       Rosemary Gallant        U.S. Consulate General
                         Tel: (852) 2521-1467     26 Garden Road
                         Fax: (852) 2845-9800     Hong Kong

U.S. Consulate General Economic/Political Section

Chief                        Douglas Spelman        U.S. Consulate 
                                                    General Economic-
                                                    Political Section
                             Tel: (852) 2841-2101   26 Garden Road
                             Fax: (852) 2526-7382   Hong Kong

Foreign Agricultural Service -- Hong Kong

Agricultural Trade Officer   LaVerne E. Brabant     U.S. Consulate 
                                                    General
                             Tel: (852) 2841-2350   26 Garden Road
                             Fax: (852) 2845-0943   Hong Kong

Asst. Agricultural           Garth Thorburn          U.S. Consulate 
                                                     General Trade 
                                                     Officer
                             Tel: (852) 2841-2350    26  Garden Road
                             Fax: (852) 2845-0943    Hong Kong

Department of Commerce -- International Trade Administration
Country Desk Officer         Sheila Baker        U.S. Department of
                             Tel: 1 (202) 482-3932    Commerce
                             Fax: 1 (202) 482-1576    Room 2317
                                            Office of China, Hong
                                            Kong and Mongolia
                                            Herbert C. Hoover Bldg.
                                            14th & Constitution Ave, NW
                                            Washington, D.C. 20230
                                            U.S.A.

US&FCS Director               Herbert Cochran          U.S. Department 
of East Asia and Pacific Tel: 1 (202) 482-2422         Commerce
                         Fax: 1 (202) 482-5179         Room 1229
                                             Office of International
                                             Operations
                                             Herbert C. Hoover Bldg.
                                             14th & Constitution Ave,
                                             NW
                                             Washington, D.C. 20230
                                             U.S.A.

Department of State 

Country Desk Officer       Ted Allegra          U.S. Department of State
                      Tel: 1 (202) 647-6802     Office of Chinese and
                         Fax: 1 (202) 647-6820   Mongolian Affairs
                                                Room 4318
                                                Washington, D.C. 20520
                                                U.S.A.

Special Advisor to the    Kathleen Harrington   East Asian and Pacific 
Assistant Secretary       Tel: 1 (202) 647-6904     Affairs
and Coordinator for                             U.S. Department of State
Commercial Affairs                              Washington, D.C. 20520
                                                U.S.A.

b.  American Chamber of Commerce and/or Bilateral Business Councils

American Chamber of Commerce -- Hong Kong

Frank G. Martin, President
1030  Swire House
Central
Hong Kong
Tel: (852) 2526-0165
Fax: (852) 2810-1289


c.  Country Trade or Industry Associations in Key Sectors

American Chamber of Commerce - Hong Kong
1030 Swire House
Central
Hong Kong
Tel: (852) 2526-0165
Fax: (852) 2810-1289

Association of Building Management
G.P.O. Box 13012
Hong Kong 
Tel: (852) 2679-5744
Fax: (852) 2679-5753

Chartered Institution of Building Services Engineers
(Hong Kong Advisory Panel)
P.O. Box 20342, Hennessy Road Post Office
Hong Kong
Tel: (852) 2766-5849
Fax: Nil

Chartered Institute of Building (Hong Kong Branch)
G.P.O. Box 9874
Hong Kong
Tel: (852) 2365-8666
Fax: (852) 2364-0185


Chinese General Chamber of Commerce, Hong Kong
7th Floor, 24-25 Connaught Road
Central
Hong Kong
Tel: (852) 2525-6385
Fax: (852) 2845-2610

Chinese Manufacturers' Association of Hong Kong
CMA Building
64-66 Connaught Road
Central
Hong Kong
Tel: (852) 2542-8600
Fax: (852) 2541-4541

Computer Club Hong Kong Ltd.
Room 9A, 9/F.
Go-Up Commercial Bldg
998 Canton Road
Mongkok, Hong Kong
Tel: (852) 2374-1328
Fax: (852) 2374-0859

The Cosmetic & Perfumery Association of Hong Kong Ltd.
Room 308 Winning Commercial Building
46-48 Hillwood Road
Tsimshatsui, Hong Kong
Tel: (852) 2366-8801
Fax: (852) 2312-0348

Federation of Hong Kong Industries
4th Floor, Hankow Center
5-15 Hankow Road, Tsimshatsui
Kowloon, Hong Kong
Tel: (852) 2732-3188
Fax: (852) 2721-3494

Graphic Arts Association of Hong Kong Ltd.
Block C, Room 1625
16/F. Metropole Building
416 King's Road
North Point, Hong Kong
Tel: (852) 2408-1515
Fax: (852) 2856-9765

Hong Kong Air Traffic Control Association
Air Traffic Management Division
Civil Aviation Department
Hong Kong International Airport
Kowloon, Hong Kong
Tel: (852) 2769-8322
Fax: (852) 2362-8101

Hong Kong Association for the Advancement of Science & Technology
2A, Tak Lee Commercial Bldg.
113-117 Wanchai Road
Wanchai, Hong Kong
Tel: (852) 2891-3388
Fax: (852) 2838-1823


Hong Kong Association of Certification Laboratories Ltd.
1/F. CMA Bldg
64-66 Connaught Road
Central, Hong Kong
Tel: (852) 2542-8620
Fax: (852) 2541-4541

Hong Kong Association of Energy Engineers Ltd.
10/F. Dah Sing Financial Center
108 Gloucester Road
Wanchai, Hong Kong
Tel: (852) 2507-7777
Fax: (852) 2507-7700

Hong Kong Association of the Pharmaceutical Industry
Room 2, 10/F. Sincere Insurance Building
4-6 Hennessy Road
Wanchai, Hong Kong
Tel: (852) 2528-3061
Fax: (852) 2865-6283

Hong Kong Aviation Club Ltd.
Sung Wong Toi Road
Kowloon, Hong Kong
Tel: (852) 2713-5171
Fax: (852) 2761-9511

The Hong Kong Chinese Importers' & Exporters' Association
7-8th Floors, Champion Building
287-291 Des Voeux Road
Central, Hong Kong
Tel: (852) 2544-8474, 2545-5998
Fax: (852) 2544-4677

Hong Kong Computer Society
Unit D, 1/F. Luckifast Bldg
1 Stone Nullah Lane
Wanchai, Hong Kong
Tel: (852) 2834-2228
Fax: (852) 2834-3003

Hong Kong Construction Association Ltd.
3/F. 180-182 Hennessy Road
Wanchai, Hong Kong
Tel: (852) 2572-4414
Fax: (852) 2572-7104

The Hong Kong Electronics Association
Unit 208-209, HK Industrial Technology Center
72 Tat Chee Ave., Kowloon
Hong Kong
Tel: (852) 2778-8328
Fax: (852) 2788-2200

Hong Kong Federation of Insurers
9th Floor, First Pacific Bank Center
56 Gloucester Road
Wanchai, Hong Kong
Tel: (852) 2520-1868
Fax: (852) 2520-1967

The Hong Kong General Chamber of Commerce
22nd Floor, United Center
95 Queensway
Hong Kong
Tel: (852) 2529-9229
Fax: (852) 2527-9843, 2866-2035

Hong Kong Industry & Commerce General Association Ltd.
Room 7, 2nd Floor, Fu Yip Building
21-27 Station Lane
Hung Hom
Kowloon, Hong Kong
Tel: (852) 2764-4321
Fax: (852) 2764-4144

Hong Kong Information Technology Federation Ltd.
Suite 25A, One Capital Place
18 Luard Road
Wanchai, Hong Kong
Tel: (852) 2527-2127
Fax: (852) 2527-1960

Hong Kong International Aerospace Forum
c/o Sabb Aircraft International Ltd
606 Peregrine Tower
Lippo Center
89 Queensway
Hong Kong
Tel: (852) 2810-4220
Fax: (852) 2810-4135

Hong Kong Medical Association
5/F., Duke of Windsor Social Service Building
15 Hennessy Road
Wanchai, Hong Kong
Tel: (852) 2527-8285
Fax: (852) 2865-0943

Hong Kong PATA (Pacific Asia Travel Association) Chapter
Room 1003, Tung Ming Building
40 Des Voeux Road
Central, Hong Kong
Tel: (852) 2869-8624
Fax: (852) 2869-8632

Hong Kong Pharmaceutical Manufacturers Association Ltd.
c/o Neochem Pharmaceutical Laboratories Ltd.
5B Cheung Wah Industrial Building
10-12 Shipyard Lane
Quarry Bay, Hong Kong
Tel: (852) 2562-6255
Fax: (852) 2563-4018

Hong Kong Plastic Material Suppliers Association
5/F. Interlanche House
39-41 Hankow Road
TST, Hong Kong
Tel: (852) 2375-2686
Fax: (852) 2317-1129

Hong Kong Plastic Technology Center Ltd.
U509 Hong Kong Polytechnic
Hung Hom
Kowloon, Hong Kong
Tel: (852) 2766-5577
Fax: (852) 2766-0131

Hong Kong Printers Association
1/F. 48-50 Johnston Road
Wanchai, Hong Kong
Tel: (852) 2527-5050
Fax: (852) 2861-0463

Hong Kong Productivity Council
Electronics Services Division
HKPC Building
78 Tat Chee Ave.
Kowloon, Hong Kong
Tel: (852) 2788-5678
Fax: (852) 2788-5770

Hong Kong Telecom Association
GPO Box 13461
Hong Kong
Tel: (852) 2881-2333
Fax: (852) 2881-2332

Hong Kong Trade Development Council
36-39th Floors, Convention Plaza
1 Harbor Road
Wanchai, Hong Kong
Tel: (852) 2584-4333
Fax: (852) 2824-0249

Hong Kong/United States Economic Co-operation Committee
c/o Hong Kong Trade Development Council
39th Floor, Convention Plaza
1 Harbor Road
Wanchai, Hong Kong
Tel: (852) 2584-4333
Fax: (852) 2573-0249

Office of the Telecommunications Authority
29th Floor, Wu Chung House
213 Queen's Road East
Wanchai, Hong Kong
Tel: (852) 2961-6333
Fax: (852) 2803-5110

Pharmaceutical Trade Federation Ltd.
Room 3905, 39/F. Hong Kong Plaza
186-191 Connaught Road West
Hong Kong
Tel: (852) 2548-0068
Fax: (852) 2559-5689

Society of Builders Hong Kong
Rm 801-802, On Lok Yuen Building
25 Des Voeux Road
Central, Hong Kong
Tel: (852) 2523-2081
Fax: (852) 2845-4749

Travel Industry Council of Hong Kong
Room 1706-1709, Fortress Tower
250 King's Road
North Point, Hong Kong
Tel: (852) 2807-1199
Fax: (852) 2510-9907

World Energy Council Member Committee of Hong Kong
c/o China Light & Power Co. Ltd.
147 Argyle Street
Kowloon, Hong Kong
Tel: (852) 2760-6111
Fax: (852) 2760-4448


d.  Country Government Offices Relating to Key Sectors and/or 
Significant Trade Related Activities

Government & Quasi Government Offices Relating to Key Sectors

Buildings Department
3rd-12th Floors, Murray Building
Garden Road
Central, Hong Kong
Tel:  (852) 2848-2327
Fax:  (852) 2840-0451

Census & Statistics Department
16th-22nd Floors, Wanchai Tower
12 Harbor Road
Wanchai, Hong Kong
Tel:  (852) 2582-4807
Fax:  (852) 2802-4000

Civil Aviation Department
46th Floor, Queensway Government Offices
66 Queensway
Hong Kong
Tel:  (852) 2867-4332
Fax:  (852) 2869-0093

Consumer Council
22nd Floor, K. Wah Center
191 Java Road
North Point, Hong Kong
Tel:  (852) 2856-3113
Fax:  (852) 2856-3611

Customs & Excise Department
6th-9th Floors, Harbor Building
38 Pier Road
Central, Hong Kong
Tel:  (852) 2852-1411

Customs & Excise Department
Intellectual Property Investigation Bureau
6th-9th Floors, Harbor Building
38 Pier Road
Central, Hong Kong
Tel:  (852) 2852-1411

Drainage Services Department
43rd Floor, Revenue Tower
5 Gloucester Road
Wanchai, Hong Kong
Tel:  (852) 2877-0660
Fax:  (852) 2827-8605

Electrical & Mechanical Services Department
98 Caroline Road
Causeway Bay, Hong Kong
Tel:  (852) 2895-8620, (852) 2895-8817
Fax:  (852) 2890-7493

Environmental Protection Department
24th-28th Floors, Southorn Center
130 Hennessy Road
Wanchai, Hong Kong
Tel:  (852) 2835-1018
Fax:  (852) 2838-2155

Government Supplies Department
12 Oil Street
North Point, Hong Kong
Tel:  (852) 2802-6104
Fax:  (852) 2887-6591

Department of Health
17th & 21st Floors, Wu Chung House
213 Queen's Road East
Wanchai, Hong Kong
Tel:  (852) 2961-8989
Fax:  (852) 2836-0071

Industry Department
14th Floor, Ocean Center
5 Canton Road
Tsimshatsui, Hong Kong
Tel:  (852) 2737-2208
Fax:  (852) 2730-4633

Industry Department
Technology Development Division
14th Floor, Ocean Center
5 Canton Road
Tsimshatsui, Hong Kong
Tel:  (852) 2737-2216
Fax:  (852) 2377-0730

Office of the Commissioner of Insurance
21st Floor, Queensway Government Offices
66 Queensway
Central, Hong Kong
Tel:  (852) 2867-2565
Fax:  (852) 2869-0252

Intellectual Property Department
24th & 25th Floor, Wu Chung House
213 Queen's Road East
Wanchai, Hong Kong
Tel:  (852) 2961-6810
Fax:  (852) 2838-6276

Hong Kong Productivity Council
HKPC Building
78 Tat Chee Avenue
Yau Yat Chuen, Hong Kong
Tel:  (852) 2788-5678
Fax:  (852) 2788-5900

Hong Kong Trade Development Council
38th Floor, Office Tower
Convention Plaza
1 Harbor Road
Wanchai, Hong Kong
Tel:  (852) 2584-4333
Fax:  (852) 2824-0249

Hospital Authority
25th Floor, World Trade Center
Causeway Bay, Hong Kong
Tel:  (852) 2805-6555
Fax:  (852) 2890-5969, (852) 2881-8058

Provisional Airport Authority
25th Floor, Central Plaza
18 Harbor Road
Wanchai, Hong Kong
Tel:  (852) 2824-7111
Fax:  (852) 2802-7703

Office of the Telecommunications Authority
29th Floor, Wu Chung House
213 Queen's Road East
Wanchai, Hong Kong
Tel:  (852) 2961-6333
Fax:  (852) 2803-5110

Trade Department
Ground Floor, Trade Department Tower
700 Nathan Road
Kowloon, Hong Kong
Tel:  (852) 2398-5333
Fax:  (852) 789-2491, (825) 395-3182


e.  Country Market Research Firms

International Data Corporation China/Hong Kong Ltd.
Suite 3004 Universal Trade Center
3 Arbuthnot Road
Central
Hong Kong
Tel: (852) 2530-3831
Fax: (852) 2547-0154

Lou Rauscher Associates
Block A 1313 Hoi Luen Industrial Center
55 Hoi Yuen Road
Kwun Tong
Kowloon, Hong Kong
Tel: (852) 2341-6256
Fax: (852) 2341-6643

Asian Strategies Ltd.
4404 China Resources Bldg.
26 Harbor Road
Wanchai
Hong Kong
Tel: (852) 2827-4627
Fax: (852) 2827-6097

Dataquest Hong Kong
2E04 HKPC Building
78 Tat Chee Avenue
Kowloon, Hong Kong
Tel: (852) 2788-5432
Fax: (852) 2788-5433

Hong Kong Productivity Council
Marketing Group
HKPC Building
78 Tat Chee Avenue
Yau Yat Chuen
Kowloon, Hong Kong
Tel: (852) 2788-5678
Fax: (852) 2788-5042

Macneil Pacific Ltd.
10th Floor, Allied Capital Resources Bldg.
32-38 Ice House Street
Central
Hong Kong
Tel: (852) 2521-1676
Fax: (852) 2845-2950

Boston Consulting Group, The
Room 1603-6 Times Square
Shell Tower
1 Matheson Street
Causeway Bay
Hong Kong
Tel: (852) 2506-2111
Fax: (852) 2506-9084

Nomura Research Institute (HK) Ltd.
20/F, Citibank Tower
3 Garden Road
Central
Hong Kong
Tel: (852) 2536-1800
Fax: (852) 2536-1818

Ogilvy & Mather (Asia) Pte. Ltd.
8th Floor, Mount Parker House
Taikooshing
Quarry Bay
Hong Kong
Tel: (852) 2568-0161
Fax: (852) 2567-7240

Researchasia Ltd.
1st Floor, China-Hong Kong Tower
8-12 Hennessy Road
Wanchai
Hong Kong
Tel: (852) 2527-7881
Fax: (852) 2520-0079

Win Concept Consulting Company
Unit 2911, 29th Floor
Metroplaza, Tower II
Hing Fong Road
Kwai Chung
Hong Kong
Tel: (852) 2410-8618
Fax: (852) 2426-1233

Survey Research HK Ltd. (SRH Ltd.)
7th Floor, Warwick House, East Wing
979 King's Road
Quarry Bay
Hong Kong
Tel: (852) 2880-3388
Fax: (852) 2565-0418

SRG China (Survey Research Group)
26th Floor Devon House
979 King's Road
Quarry Bay
Hong Kong
Tel: (852) 2856-7333
Fax: (852) 2516-6856

Pacific Rim Consulting Group
8th Floor, California Tower
30-32 D'Aguilar Street
Central
Hong Kong
Tel: (852) 2526-4061
Fax: (852) 2810-4845

International Market Research (HK) Ltd.
2803 Admiralty Center Tower
Hong Kong
Tel: (852) 2529-0356
Fax: (852) 2861-3420
Salem & Associates 
University Heights
D3/6th Floor
42-44 Kotewall Road
Hong Kong
Tel: (852) 2517-0043
Fax: (852) 2517-8614


f.  Country Commercial Banks

(Licensed U.S. Commercial Banks)

American Express Bank Ltd.
35th Floor, One Pacific Place
88 Queensway
Hong Kong
Tel: (852) 2844-0688
Fax: (852) 2845-3637

Bank of America NT & SA
1st Floor, Bank of America Tower
12 Harcourt Road
Hong Kong
Tel: (852) 2847-5333
Fax: (852) 2847-5410

Bank of California, The
1006-8, 10th Floor Asia Pacific Finance Tower
Citibank Plaza
3 Garden Road
Hong Kong
Tel: (852) 2826-0600
Fax: (852) 2877-2666

Bank of New York, The
7th Floor, New Henry House
10 Ice House Street
Hong Kong
Tel: (852) 2840-9888
Fax: (852) 2810-5279

Bankers Trust Company
36th Floor, Two Pacific Place
88 Queensway, Hong Kong
Tel: (852) 2533-8000
Fax: (852) 2845-1868

Chase Manhattan Bank NA, The
12th Floor, World Trade Center
280 Gloucester Road
Hong Kong
Tel: (852) 2837-5111
Fax: (852) 2837-5099

Citibank NA
40-50 Floors, Citibank Tower Citibank Plaza
3 Garden Road, Central
Hong Kong
Tel: (852) 2868-8888
Fax: (852) 2868-8111

First National Bank of Boston, The
Suites 801-809 Jardine House
Connaught Place
Central
Hong Kong
Tel: (852) 2526-4361
Fax: (852) 2845-9222

First National Bank of Chicago, The
13th Floor, Jardine House
1 Connaught Place
Hong Kong
Tel: (852) 2844-9222
Fax: (852) 2844-9318

NBD Bank, NA
Room 804 Lippo Tower Lippo Center
89 Queensway
Hong Kong
Tel: (852) 2523-1189
Fax: (852) 2810-6582

Norwest Bank Minnesota, NA
4102-3 Central Plaza
18 Harbor Road
Wanchai, Hong Kong
Tel: (852) 2519-2500
Fax: (852) 2827-8290

Note: This list does not include U.S. restricted license banks, deposit 
taking companies, and representative offices


g.  TPCC Trade Information Center in Washington

Trade Information Center (TIC)
Tel: 1-800-USA-TRADE (1-800-872-8723)
Fax: (202) 482-4473

TIC specialists provide basic export counseling and information on 
export services and programs offered by 19 federal agencies of the Trade 
Promotion Coordinating Committee (TPCC).  The annual report of the TPCC, 
"The National Export Strategy", designates "the Trade Information 
Center, situated in the U.S. Department of Commerce, as the single TPCC-
wide information office that will coordinate specialized non-
agricultural export information offices."


h.  U.S. Department of Agriculture

Trade Assistance and Planning Officer
Ms. Margaret Thursland
Room 4939, South Building
14th & Independence, SW
Washington D.C. 20250-1000
Tel: (202) 690-0519
Fax: (202) 690-4374

Area Officer
Ms. Robin Tilsworth
Room 5092, South Building, USDA
14th & Independence, SW
Washington D.C. 20250-1000
Tel: (202) 720-3253
Fax: (202) 720-6138


APPENDIX F -- MARKET RESEARCH

A.  Industry Subsector Analyses

FCS Hong Kong prepares a number of Industry Subsector Analyses (ISAs) 
every year.  These reports are on subsectors of our Best Prospects, and 
are based on the contribution we feel this reporting will make to U.S. 
exporters.  These reports are available on the National Traders Data 
Bank (NTDB) CD-ROM diskettes, through Department of Commerce District 
Offices, and Commercial Service Offices overseas.

In FY '95, we prepared the following ISAs:

     Sector Code     Descriptions

     (MCS)          Management Consultancy Services
     (ELC)          Electronic Parts and Components
     (STR)          Selling to the Hong Kong Government
     (CON)          Construction Equipment
     (BLD)          Lifts and Escalators
     (AUT)          Electric Vehicles
     (COS)          Make-Up Preparation
     (TRA)          Travel and Tourism
     (BLD)          Curtain Wall Glass
     (FPP)          Food Packaging Equipment
     (CPT)          PC/LAP Top Computers
     (STR)          Chinese Enterprises in Hong Kong
     (CAD)          CAD/CAM/CAE
     (PMR)          Plastic Resins
     (POL)          Air Pollution Control Equipment


For FY '96, we plan to complete ISAs on the following topics:

Sector Code     Proposed ISA Topics FY'96                    Due Date
(BLD)          Fire Proof Doors                           March 31, 1996
(CON)          Earth Moving Equipment                     April 30, 1996
(MED)          Cardiovascular Equipment                   April 30, 1996
(COS)          Perfumery                                   May 30, 1996
(TEL)          Telecommunications Equipment                May 30, 1996
(PGS)          Printing Machinery                          June 30, 1996
(LAB)          Lab/Scientific Analytical Equipment         June 30, 1996
(POL)          Industrial Waste Water Control Technologies June 30, 1996
(POL)          Infrastructure Projects - Environmental     June 30, 1996
(ELP)          Power Generating Boilers                    July 30, 1996
(INS)          Retirement Fund Scheme                      July 30, 1996


B.     Reports Prepared by FAS

     Market Overviews

     The Agricultural Trade Office (ATO) Hong Kong prepares a broad 
range of market overviews which are available for the public by 
contacting the Foreign Agricultural Service, PSC 464, Box 30, FPO AP 
96522-0002 or fax 852 845-0943.  Market overviews are updated as often 
as possible, and new overviews are added according to market trends.  
The current list of overviews include the following subjects:

     Beer                         Sauce/Condiment/Spice
     Bottled Water                Seafood
     Convenience Stores           Snack Foods
     Cut Flowers                  Timber and Wood Products
     Dairy Products               Vegetables
     Dried Fruits/Nuts            Vegetable Oil
     Eggs                         Water
     Fast Food                    Wine
     Food Retailing
     Fresh Fruits
     Fruit Juice
     Ginseng
     High Value Products
     Hotel/Club/Restaurant
     Indulgent Desserts
     Microwave Foods
     Poultry
     Packaged, Canned & Frozen Meat

     ATO Information

     ATO Hong Kong Summary
     FAS Brochure
     U.S. Cooperators Directory
     U.S. State Offices Directory

     Hong Kong Market

     Planning to Enter the Hong Kong Market: Things to Consider

     Topic Specific

     ATO Helps GrandMart's Grand Team Become a Grand Scheme
     Time for Change:  Fresh Food Retailing in Hong Kong

U.S. Market Development Cooperator Organizations represented in Hong 
Kong


USA Poultry & Egg Export Council     American Forest & Paper 
Association, Inc
Ms. Sarah Li                    Mr. John Chan
Director of Market Development  Director
303 Sunning Plaza               Room 528 New World Office Bldg.
10 Hysan Avenue                 West Wing, 20 Salisbury Road
Hong Kong                       Kowloon, Hong Kong
Tel: (852) 2890-2908            Tel: (852) 2724-0228
Fax: (852) 2895-5546            Fax: (852) 2366-8931

Sunkist Growers, Inc.           Cotton Council International
Ms. Maria Kwow                  Mr. Timothy C. Heberlein
Room 1242 Swire House           Managing Director
11 Chater Road, Hong Kong       302 Sunning Plaza
Tel: (852) 2524-9219            10 Hysan Avenue, Hong Kong
Fax: (852) 2845-3454            Tel: (852) 2890-2755
                                Fax: (852) 2895-5546

U.S. Potato Board               California Cherries Advisory Board
California Tree Fruit Agreement National Dairy Promotion & Research 
Board
California Table Grape Commission   Wine institute
Mr. Michael Wong                    Florida Department of Citrus
Michael Wong & Co.               California Cut Flower Commission
3B Harvard Commercial Building     Mr. Daniel Chan
105 Thomson Road                   PR Consultants Ltd.
Wanchai                            Unit D, 14/F., Vulcan House
Hong Kong                          21-23 Leighton Road, Hong Kong
Tel: (852) 2891-3889               Tel: (852) 2833-5977
Fax: (852) 2891-3702               Fax: (852) 2893-7538

U.S. Meat Export Federation          National Renderers Association, 
Inc.
Mr. Joel Haggard                     Dr. Robert Rowland
303 Sunning Plaza                    Acting Regional Director
10 Hysan Avenue                      302 Sunning Plaza
Hong Kong                            10 Hysan Avenue, Hong Kong
Tel: (852) 2890-7408                 Tel: (852) 2890-2529
Fax: (852) 2576-7345                 Fax: (852) 2576-8045

Blue Diamond                          U.S. Wheat associates
Mr. Enoch Y. Sun                      Mr. Matt Weimar
Eastern Zone Industrial Co., Ltd.     Far East Director
21-A Chai Wan Industrial Center       302 Sunning Plaza
20 Lee Chung Street                   10 Hysan Avenue
Chai Wan, Hong Kong                   Hong Kong
Tel: (852) 2898-8632                  Tel: (852) 2890-2815
Fax: (852) 2898-8440                  Fax: (852) 2895-5546

Washington Apple Commission          California Cling Peach Advisory 
Board
WUSATA                            California Raisin Advisory Board
Northwest Cherry Growers          California Pistachio Commission
Mr. Philander Fan                 California Avocado Commission
Marketing Channels                Oregon Washington California Pear 
Bureau
Room 403, Cheung's Building          American Legend Mink
1 Wing Lok Street                    Mr. Louis Ng
Central                              Louis Ng & Associates Ltd.
Hong Kong                            Suite B, 3/F Luen Wai Commercial 
Building
Tel: (852) 2815-6773, 2815-9375     93-97 Des Voeux Road West, Hong Kong
Fax: (852) 2544-7858               Tel:  (852) 2858-2230 
                                   Fax:  (852)2559-5896

Washington Apple Commission
Asia Regional Office
Mr. Brent Evans
Asia Marketing Director
Flat 4-B, Block 2, Vista Avenue
Discovery Bay
Hong Kong
Tel: (852) 2987-1286
Fax: (852) 2987-7936


APPENDIX G -- TRADE EVENT SCHEDULE

A.  FY96 Events include:

Event Name:        Textile Homefurnishing Trade Mission
Date of Event:     November 2 - 3 or 16 - 17, 1995
Industry Theme:    Textile Homefurnishing Goods
Type of Event:     Trade Mission
Event Location:    Hong Kong
     
Event Name:        Sporting Goods Matchmaker
Date of Event:     October 29 - November 1, 1995
Industry Theme:    Sporting Goods
Type of Event:     Matchmaker
Event Location:    Hong Kong
 
Event Name:        Construction Equipment Trade Mission
Date of Event:     December 1995
Industry Theme:    Construction Materials
Type of Event:     Trade Mission
Event Location:    Hong Kong
     
Event Name:        Environmental Equipment and Services Trade Mission
Date of Event:     December 9-13, 1995
Industry Theme:    Pollution Control Equipment
Type of Event:     Trade Mission
Event Location:    Hong Kong

Event Name:        Education and Career Expo
Date of Event:     February 1996
Industry Theme:    Education and Manpower Training
Type of Event:     Certified Trade Show (USA Pavilion)
Event Location:    Hong Kong

Event Name:        U.S. Pleasure Boat Trade Mission
Date of Event:     March or Summer 1996
Industry Theme:    Sporting Goods and Pleasure Boats
Type of Event:     Trade Mission
Event Location:    Hong Kong

Event Name:        Asia Beauty '96
Date of Event:     July 3 - 6, 1995
Industry Theme:    Beauty and Cosmetics Goods
Type of Event:     Certified Trade Show (USA Pavilion)
Event Location:    Hong Kong

Event Name:        Jewelry Trade Mission
Date of Event:     September 1996
Industry Theme:    Jewelry
Type of Event:     Trade Mission
Event Location:    Hong Kong

B.  Trade Event Schedule  (October 1995 - September 1996)

The Following major trade shows are also scheduled for Hong Kong 
although the Commercial Service Hong Kong is not directly involved with 
them.

October 3 - 6, 1995
FOT - The 11th Hong Kong International Footwear Fair
Hong Kong Convention and Exhibition Center
Organized by:  HTFL  

October 3 - 6, 1995
LFP - The 10th Hong Kong International Handbags and Leather Goods Fair
Hong Kong Convention and Exhibition Center
Organized by:  HTFL  

October 11 - 14, 1995
ELC - The 15th Hong Kong Electronics Fair
Hong Kong Convention and Exhibition Center
Organized by:  HKTDC

October 18 - 20, 1995
FOD - Food Marketing Institute (AsiaMart '95)
Hong Kong Convention and Exhibition Center
Organized by:  FMI

October 18 -20, 1995
TXF - Interstoff Asia '95 (International Fabric Show)
Hong Kong Convention and Exhibition Center
Organized by:  MFHKL

November 1 - 5, 1995
AUV - The 7th International Audio and Visual Show
Hong Kong Convention and Exhibition Center
Organized by:  HKTDC

November 2 - 5, 1995
FUR, BLD - The 12th Hong Kong International Furniture Fair (For Home, 
Offices and Special Projects)
Hong Kong Convention and Exhibition Center
Organized by:  HTFL

November 7 - 11, 1995
SPT - Hong Kong Golf Conference and Exhibition
Hong Kong Convention and Exhibition Center
Organized by:  GMG

December 5 - 7, 1995
PGA - Screen Printing Asia '95 (The 9th International Exhibition of 
Screen Making and Screen Printing Equipment and Services for Asia)
International Trademart, Hong Kong
Organized by:  EPL

December 15 - 19, 1995
GFT - The 8th Christmas Showcase
Hong Kong Convention and Exhibition Center
Organized by:  HKTDC

December 15 - 19, 1995
BLD, FUR, HCG - The 6th Ideal Home Expo
Hong Kong Convention and Exhibition Center
Organized by:  HKTDC

January 10 - 13, 1996
TOY - The 22nd Hong Kong Toys and Games Fair
Hong Kong Convention and Exhibition Center
Organized by:  HKTDC

January 19 - 20, 1996
APP - The 27th Hong Kong Fashion Week - Fall/Winter
Hong Kong Convention and Exhibition Center
Organized by:  HKTDC

February 8 - 11, 1996
EDS - The 6th Education and Careers Expo
Hong Kong Convention and Exhibition Center
Organized by:  HKTDC

February 28 - March 2, 1996
APP, LFP - 1996 Hong Kong International Fur and Fashion Fair
Hong Kong Convention and Exhibition Center
Organized by:  FFMDHKL

March 11 - 14, 1996
JLR - The 14th Hong Kong International Jewelry Show
Hong Kong Convention and Exhibition Center
Organized by:  HKTDC

March 28 - 31, 1996
MTL - Hong Kong International Machine Tool -- Linkage Industry 
Exhibition '96
Hong Kong Convention and Exhibition Center
Organized by:  PCES

March 28 - 31, 1996
LAB, PKG, PME - Exhibition of Modern Laboratory Equipment, Supplies and 
Services 96, Plastics and Packaging '96
Hong Kong Convention and Exhibition Center
Organized by:  PCES

April 17 - 20, 1996
GFT, HCG - The 11th Hong Kong Gifts and Houseware Fair
Hong Kong Convention and Exhibition Center
Organized by:  HKTDC

April 17 - 20, 1996
GFT - The 6th Hong Kong Premium Show
Hong Kong Convention and Exhibition Center
Organized by:  HKTDC

April 22 -25, 1996
APP, LFP - Asia Pacific Leather Fair Part I
Hong Kong Convention and Exhibition Center/China Resources Exhibition 
Center
Organized by:  HKTFG

April 29 - 1 May, 1996
APP, LFP - Asia Pacific Leather Fair Part II
Hong Kong Convention and Exhibition Center
Organized by:  HKTFG

April 1996
FUR, HCG - The 7th Electric Home Appliances Expo
Hong Kong Convention and Exhibition Center
Organized by:  HKTDC

May 30 - June 2, 1996
TRA - International Travel Expo Hong Kong 1996
TRA - The Annual International Tourism Exposition of Asia 1996
Hong Kong Convention and Exhibition Center
Organized by:  ITEHKL

May 1996
CPT, CSF - COMPUTER '96 (The 12th International Computer Expo)
Hong Kong Convention and Exhibition Center
Organized by:  BITFL

May 1996
PME, PMR - PLASTIC ASIA '96 (The 13th International Plastics Machinery, 
Materials, Production Technology and Ancillary Equipment Exhibition for 
Asia)
Hong Kong Convention and Exhibition Center
Organized by:  BITFL

May 1996
PGA, PKG - The 10th International Packaging and Printing Machinery and 
Materials Exhibition for Asia
Hong Kong Convention and Exhibition Center
Organized by:  BITFL

June 1996
JLR - The 10th Hong Kong International Fashion Jewelry and Accessories 
Fair
Hong Kong Convention and Exhibition Center
Organized by:  HTFL

June 1996
GCG, GFT, PAP - The 7th Hong Kong International Stationery and Premium 
Fair
Hong Kong Convention and Exhibition Center
Organized by:  HTFL

June 1996
APP - The 10th Hong Kong International Apparel Fair
Hong Kong Convention and Exhibition Center
Organized by:  HTFL

July 3 - 6, 1996
COS - The Asia Pacific Beauty Fair '96
Hong Kong Convention and Exhibition Center
Organized by:  HKTFG

July 25 - 29, 1996
BOK - Hong Kong Book Fair
Hong Kong Convention and Exhibition Center
Organized by:  HKTDC

July 1996
APP - The 28th Hong Kong Fashion Week - Spring/Summer
Hong Kong Convention and Exhibition Center
Organized by:  HKTDC

July 1996
MHM, MTL - MEX '96 (The 17th International Machinery and Material 
Exhibition for Asia -- Machine Tools and Tools Manufacturing Technology)
Hong Kong Convention and Exhibition Center
Organized by:  BITFL

July 1996
EIP - EIE '96 (The 13th International Electronics Industry, Testing 
Equipment and Instrument Exhibition for Asia)
Hong Kong Convention and Exhibition Center
Organized by:  BITFL

July 1996
ELC - ECA '96 (The 8th International Electronic Component Exhibition for 
Asia)
Hong Kong Convention and Exhibition Center
Organized by:  BITFL

July 1996
MTL - SMT '96 (The 10th International Surface Mount Technology 
Exhibition for Asia)
Hong Kong Convention and Exhibition Center
Organized by:  BITFL

August 21 - 25, 1996
FOD - The 7th Food Expo
Hong Kong Convention and Exhibition Center
Organized by:  HKTDC

September 5 - 8, 1996
GCG - The 15th Hong Kong Watch and Clock Fair
Hong Kong Convention and Exhibition Center
Organized by:  HKTDC

September 1996
GCG, JLR - The 18th Hong Kong Jewelry and Watch Fair
Hong Kong Convention and Exhibition Center
Organized by:  HTFL

September 1996
TXM - GARMENTEX '96 (The 10th International Garment Machinery, Materials 
and Accessories Exhibition for Asia)
Hong Kong Convention and Exhibition Center
Organized by:  BITFL

September 1996
TXM - TEXTILE MACHINERY EXPO '96 (The 6th International Textile 
Machinery, Materials and Accessories Exhibition for Asia)
Hong Kong Convention and Exhibition Center
Organized by:  BITFL

Contact Address for Organizers:

Headway Trade Fairs Ltd. (HTFL)
907 Great Eagle Center
23 Harbor Road
Wanchai, Hong Kong
Tel: (852) 2827-5121
Fax: (852) 2827-7064

Hong Kong Trade Development Council (HKTDC)
36-39 Floors, Office Tower
Convention Plaza, 1 Harbor Road
Wanchai, Hong Kong
Tel: (852) 2584-4333
Fax: (852) 2824-0249

Food Marketing Institute (FMI)
800 Connecticut Ave., N.W.
Washington DC, 20006-2701
U. S. A.
Tel: (202) 452-8444
Fax: (202) 429-4519

Messe Frankfurt (Hong Kong) Ltd. (MFHKL)
1808 Harbor Center
25 Harbor Road
Wanchai, Hong Kong
Tel: (852) 2802-7728
Fax: (852) 2511-3466

Golf Media Group (GMG)
Level 1, 36 Kings Park Road
West Perth, Western Australia 6005
Australia
Tel: (619) 322-3222
Fax: (619) 321-6461

Expoconsult Pte Ltd. (EPL)
100 Beach Road
#26-00 Shaw Tower
Singapore 0718
Tel: (65) 299 9273
Fax: (65) 299-9782

Federation of Fur Manufacturers and Dealers (HK) Ltd. (FFMDHKL)
Room 603, Chevalier House
45-51 Chatham Road South
Tsimshatsui, Kowloon
Hong Kong
Tel: (852) 2367-4646
Fax: (852) 2739-0799

Paper Communication Exhibition Services
Room 16, 12 Floor, Wah Shing Center
11 Shing Yip Street
Kwun Tong, Kowloon
Hong Kong
Tel: (852) 2763-9012
Fax: (852) 2341-0379

Hong Kong Trade Fair Group
44 Floor, China Resources Building
26 Harbor Road
Wanchai, Hong Kong
Tel: (852) 2827-6211
Fax: (852) 2827-7831

International Travel Expo HK Ltd.
Room 1702B, Fortress Tower
250 King's Road
North Point, Hong Kong
Tel: (852) 2508-6655
Fax: (852) 2510-7016

Business and Industrial Trade Fairs Ltd.
18 Floor, First Pacific Bank Center
51 Gloucester Road
Wanchai, Hong Kong
Tel: (852) 2865-2633
Fax: (852) 2866-1770
```

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