PORTUGAL'S bilateral trade with Hongkong is increasing rapidly. Last year, total trade between Portugal and Hongkong increased by 26 per cent compared with the previous year. In the first quarter of this year, the two-way trade has shown a remarkable 52 per cent rise, indicating that the trend is positive for improved and more lucrative trade relations. Exports from Hongkong to Portugal last year showed an increase of 29 per cent over the total exports for 1991. This was a drop from the 37 per cent increase seen in 1991 compared with 1990. However, in the first three months of this year, the value of total exports has shown a sharp increase of 54 per cent over the corresponding quarter last year. Trade sources said that this seemed to bode well for improved trade, even though the trend might indicate that re-exports from Hongkong were performing better than domestic exports. This observation appears to be borne out by recent statistics. In 1991, domestic exports from Hongkong to Portugal increased marginally by five per cent over the previous year. But last year, they decreased by 15 per cent compared with domestic exports in 1991. In the first three months of this year, there has been a further drop of 10 per cent, compared with the corresponding period last year. However, re-exports from Hongkong are rising steadily in value. In 1991, there was a 48 per cent increase over 1990 and, last year, another 38 per cent increase over the previous year. This trend seems to be continuing this year, with re-exports showing an increase of 64 per cent over the corresponding quarter of last year. The value of imports from Portugal - which registered a 16 per cent drop in 1991 over the previous year - appears to have been reversed, with a 10 per cent rise in the value of imports last year, and a further 36 per cent rise in the first quarter of this year over the same period last year. The value of total trade between Portugal and Hongkong was $1.35 billion last year and, in the first quarter of this year, it has already topped $372 million. The main domestic exports to Portugal are watches and clocks, which account for 24 per cent of total trade, clothing and clothing accessories (nine per cent), computers (nine per cent) and cutlery (eight per cent). The main re-exports to Portugal are toys, games and sporting goods, which account for 21 per cent of the value of re-exports, radios (nine per cent), and miscellaneous manufactured articles (nine per cent). The main imports from Portugal last year were lime, cement and fabricated construction materials (except glass and clay items) which accounted for 20 per cent of imports, and textile yarn, fabrics and made-up articles (12 per cent). The trade balance last year was heavily in Hongkong's favour, with total exports amounting to $1.209 billion and imports a mere $145.9 million.