3

By contrast, our domestic exports to the Federal Republic of -

Germany had actually been less in 1977 than in 1976. So there was room

for considerable expansion in 1978 and we were able to take advantage

of an acceleration of consumer demand in Germany, aided by the depreciation

of the Hong Kong dollar against the deutschmark.

28

Our domestic exports increased 21 per cent by value. But,

with the United States, we eventually came up against restricted access

as a result of the Agreement concluded with the EEC in 1977.

Before the end of the year, we had used up all the quotas for

stock items of clothing. But we were able to improve our performance

with other products, notably watches.

It was to the United Kingdom, of all our major markets, that

our performance in 1978 improved most dramatically.

As with the Federal Republic of Germany, our domestic exports

in 1977 had actually been below the level of 1976, but in 1978 they

improved by nearly 30 per cent. But towards the end of the year we were

faced with the same difficulties of restriction as with the United States

and Germany, but on an even more serious scale.

We used up even more quotas, and at least one, wool sweaters,

was used up as early as October.

Again, we did better in other items, particularly watches; and

the United Kingdom was the only major market to which we improved our exports

of transistor radios.

The rate of growth to our two other major markets outside the

Far East, Australia and Canada was reasonably good, if not quite so

dramatic as our performance in the United Kingdon and Germany.

/Performance....

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