Wah Kiu Yat Po 5.12.77
Sing Pao 5.12.77
Sing Tao Jih Pao 4.12.77
Wah Kiu Yat Po 4.12.77
The Hong Kong
Times
4.12.77
Tin Tin Daily News 4.12.77
Sing Tao Wan Pao 4.12.77
Sing Pao 4.12.77
(3) Local industrialists should seek other ways of development. Firstly, they can invest surplus capital in other industries, that is, to participate in the promotion of diversification of industry; secondly, they can invest in non-industrial services: and thirdly, they can move their equipment to under-developed areas to continue production.
(4)
We should reduce production if sales decline
At the same time, we
should take this opportunity to raise the efficiency of machinery so as to reduce production costs.
Three major cotton spinning and weaving associations have called on the Government to take retaliatory measures against the EEC. it may be practical now
It to impose restrictions on textile imports and appeal to residents to use Hong Kong products only.
In view of the present difficult situation, the authorities should call upon industrialists to unite in drawing up an overall plan in tackling the problem. In the past, the Government's laissez faire policy for industry were clever moves. But today, industrialists need the Government's support and assistance. The Government should now play a leading role and set up plans for industrial development.
Hong Kong cannot take any retaliatory measures against the EEC. What it can do is to find ways to overcome the problem. Proposals for diversification and producing quality products have been discussed for a long time but are particularly meaningful in the present situation.
The new agreement is but a minor blow to us and we should not be down- hearted. Our industry has come through hard times since the 1950's when the situation was much more difficult than at present.
The EEC is reported to have given away some of Hong Kong's quotas to other developing countries to please the Third World. We condemn this "rob Peter to pay Paul attitude.
The new agreement will certainly create problems for Hong Kong's industry. The solution lies in diversification and development of new markets.
Hong Kong might have played up the effects of an unfavourable agreement during the negotiations to get a better deal. The situation may not be all that disastrous. We should now calm down and work out solution to avoid any unnecessary disruption to our economy.
The new agreement is expected to force 10 per cent of local textile manufacturers and five per cent of the garment factories to cease operation and drive 10.000 workers out of jobs. This is a big problem for Hong Kong. But our people are highly adaptable and have in the past overcome many hardships. We should not therefore be too pessimistic and discouraged.
Hong Kong's industry is bound to feel the chain effects of the agreement and its economy will be affected drastically. We should now swiftly diversify our industry to adapt to the existing situation. The abnormal development in the clothing industry over the years resulting in keen demands for quotas, high production costs and low profits, has contributed to the present predicament. We should stop blaming people and get through these hard times by diligence and belt tightening.
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