12.
There are signs of labover problems which might deter
investment in the lighter manufacturing sector.
Indeed Fant before our
it an American electrmies firm pulled out of Korea for these reaDERS and ammermood that it intended instead to expand its existing operation
Outside the textiles sector, which is heavily in the man- unde fibre field and is expected to expand along with the greving Korean petro-gianiană industry, most of the consumer goods currently being produced
the result of overseas investment or joint ventures, mainly Japanese er American. Experts are dominated by plywood (based upon the import of Indonesian lumber, an industry which Hang Long has spectacularly
Keng failed to develop), non-made fibre garments (largely knitwear) and vigs+ Over 70 cent of experts go either to the United States or Japan their range is really quite limited. Apart from clothing, which?
in abundant supply, there is a marked lack of consumer goods visible in the shops and foreign products are almost unknown. With the current rate of expansion of the economy, there are obviously inflationary pressures being built up,
but yet they
of seriouT
contained.
12.
having said all that, I must also say there is an air of restrained optimism in official and trade circles and they seen confident of reaching their export target of US.1,000 million by 1971. There are, of course, cynics vho vill may that even if this target is not reached the figures vill be produced to indicate that in fact it has been. The viev SEEMS to be prevalent that the value and accuracy of official statistics is even more questionable in Korea than in some other countries. levertheless, there is no gainsaying that these nard-working and well-educated people
determined to forge ahead,
13.
There was no indication in becul that return hospitality was expected. My best will spend a couple of days in Hong Kong in April after the meeting of the A.P.C. Doverning Body in kanila, and I will arrange for him to be entertained. öimilarly with any other individuals
and who subsequently pass through hang Long.
whom ve
TDS/VD/CS
Copies :
Encls.
(1.D. Sorby)
wirector of -commerce and Industry
with copy of
third enclosure only
A.B.