INDUSTRY AND TRADE
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In 1961, the United States remained the largest market for the Colony's domestic products taking 23% by value. Purchases by the United States fell by $66 million or nine per cent; this was largely the result of a significant decline in the value of clothing sent to that market. Other important purchasers of Hong Kong goods were Britain, Malaya, Indonesia, Western Germany and Japan, but domestic exports were also sent to practically every country in the world. Commonwealth countries took 45% of domestic exports by value, while North America took 25%.
An indication of the size of the entrepôt trade may be gained from the value of re-exports which totalled $991 million. This was, however, a decrease of seven per cent compared with 1960. Although re-exports to China remained considerable, being valued at $91 million, this country was only the third largest purchaser of re-exports, the first and second being Malaya and Japan respec- tively. In recent years the entrepôt trade has been generally in the exchange of products of Asian countries. The chief commodities entering the re-export trade were textiles, fruits and vegetables, animal and vegetable crude materials, medicinal and pharmaceu- tical products and machinery.
TRADE DEVELOPMENTS
Although Hong Kong's domestic exports reached a record level in 1961, expansion was at a much lower rate than in the previous year and was obtained in the face of a growing number of tariff increases and other restrictions' abroad and of uncertainty facing not only the textile industry as a result of demands from industries in Europe and America for protection, but also trade in general, as Britain moved towards the European Common Market.
The Hong Kong Textile and garment industries have gained for themselves a reputation of being among the most efficient and competitive in the world. For this reason, and because a very high proportion of their products are exported, they have, despite the comparatively small size of the spinning and weaving sections (about 614,000 spindles and some 18,700 looms), figured largely in the various discussions held during the year on international trade in cotton textiles. In July the Colony contributed information on its textile industry to the Working Party established by the