0003230
G.F. 323
CONFIDENTIAL
In spite of this dependence on exports, indeed in some
.
ways because of it, we maintain our trade on fully commercial lines.
The Government gives no help, financial or otherwise, to our
industries and gives no subsidies for exports. If our prices are
competitive, they are so for commercial reasons only. And they are
so in spite of some expensive disadvantages such as expensive power,
expensive money, expensive land and the need to import all our raw
materials. Even Hong Kong's greatest asset, its labour, can no
longer be described as cheap. Wages have more than doubled in the
past ten years and are probably now the second highest in Asia,
second, that is, to Japan.
I very much hope that, while you are in Hong Kong, you
will be able to devote some time to having a look around at what we
have achieved and the difficulties we have had to overcome. Much
yet remains to be done. Particularly, of course, we would like to
show you and your advisers a cross section of our textiles industry,
its most modern, and its most primitive if you like. If you have the
time, we can easily organise something for you. You will notice
that we have proposed that there should be one free day in your
programme.
It follows from this dependence on exports of textiles that
our textiles industries take a very great interest on consultations
about Hong Kong's exports. They advise the Government on matters
affecting them, through the Cotton Advisory Board of which I am Chairman.
We have given no publicity to the present consultations, as you know.
But we have told the Cotton Advisory Board and have sought their
advice on your proposals throughout. As the consultations develop
this week, I shall no doubt have to seek their advice again.
probably do this on your free day. You will be meeting members of
the Board socially, particularly at the dinner on Friday night.
We will
But interest in Hong Kong's textiles exports is by no means
confined to the Cotton Advisory Board or to the textiles industry.
Because of Hong Kong's dependence on exports generally and exports of
textiles in particular, controls on Hong Kong's exports of textiles
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CONFIDENTIAL
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