28.
72 But prospects for our exports in 1979 will inevitably be influenced by the restrictions on textiles and clothing.
Of course, possibilities for trading up and for
diversification into other industries remain; and I feel
sure that our entrepreneurs and our labour will exercise
their traditional ingenuity to make the best of the
situation.
But the low rates of growth included in our
latest textiles agreements and the greatly reduced
provision for flexibility have placed severe limits on the extent to which our exporters can move to satisfy
changing demand in our markets. The export sector is now
reasonably competitive and well poised for more rapid
growth.
It is to be hoped that this will be facilitated
by a further slowdown in domestic demand in 1979 the reby
releasing the necessary resources. Re-exports are
traditionally hard to predict but it would be prudent
to assume that growth will be slower next year than this.
73 Taking all these relevant factors together, it
looks as if our foreign exchange earnings generated by
exports will continue to grow in 1979 at about the same
rate at this year. Provided economic growth, even at
its comparatively low present rate, continues in our
major markets
J
and generally speaking this is what we
expect it should generate substantial further growth in
Hong Kong.