HONG KONG'S trade in goods and services in 1994 is tipped to grow 12.3 per cent in real terms over 1993, to reach about $2,660 million, Director-General of Trade Tony Miller said yesterday. 'Re-exports continue to dominate and are expected to grow by about 15 per cent in 1994 to reach $924 billion,' he said. 'Domestic exports, however, are likely to decrease by roughly two per cent to $213 billion.' He also said Hong Kong's trade in services was becoming increasingly important, with services exports now almost as great as domestic exports of goods. 'Total trade in services in 1994 is forecast to amount to $315 billion, an increase of seven per cent in real terms over 1993,' he said. For 1995, Mr Miller expects Hong Kong's overall trade to grow 15 per cent, with re-exports outperforming domestic exports. 'Re-exports will be growing in the high teens and that is going to remain as long as the Chinese economy continues to make up for lost time,' he said. Re-exports would outpace domestic exports by a ratio of five-to-one as the territory's economy continued to change from a manufacturing base to a service economy. 'This clearly reflects the way in which our economy has reverted to being an entrepot economy - a trading point for goods both going into and coming out of China - but also a trading economy, re-exporting and distributing goods around the Asian region,' he said. Despite the adjustment in the economy, domestic exports had managed to increase the value of production and exports. Mr Miller said that it had only been in the last couple of years that Hong Kong had begun to see a slow decline in the productive capacity of domestic exports. 'But this is not to say that we are not significant in manufacturing. We tend now to produce higher value and technology production and exports rather than the lower value and lower technology production of the past,' he said. Hong Kong appeared to have found a niche selling electrical appliances to other Asian countries, judging from the increase in re-exports of those items to the rest of Asia. He said the increase in the re-exports of such goods partly could be attributed to liberalisation of the Co-ordinating Committee for Multilateral Export Controls (COCOM), which was dissolved on March 31. COCOM was set up in 1949 to restrict China and other communist countries from acquiring Western high-technology which could lead to development of military technology. On China's announcement that it would not be able to enter the General Agreement on Tariffs and Trade (GATT) before year-end, Mr Miller said it was disappointing the mainland would not be able to meet its objectives this year, but expressed confidence China would become a member of GATT in the new year.