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magnificent job to counter this influx over the border, both on land and
sea.
The border fences themselves have been reinforced and improved. Je
have amended the Law on aiding and abetting. At the same time we have
taken, and continue to take, every opportunity to make representations to
the Chinese authorities. As a result of these measures, we have seen a
reduction in the legal outflow from China (which was about 300 a day in
December 1978) to about 150 per day at present. And, following measures
announced by the Chinese authorities last month and introduced during this
month, there has been a welcome decrease in illegal immigration too. So
far this month, the average daily arrests have numbered 137. The decreases
are welcome but the figures, both for legal arrivals and for those attempting
to come here illegally, are still, too high. Furthermore, although in the
first week of January, daily arrests were encouragingly low, in the past
two weeks there has been an increase: not to the figures of December,
but nevertheless rather worrying.
Now let us consider another area of concern in 1979 which continues
into the eighties: the constraining effect of protectionism on our economic
growth. In 1961 only about 10 per cent of our domestic exports of textiles and
clothing were covered by the bilateral agreements our trading partners
had obliged us to conclude with them to restrain our exporte. This proportion
has now increased to about 60 per cent, and at present, most unhappily, the tendency
is for this progressive shift towards protectionism to continue. While we
shall of course resist its application to Hong Kong's trade with as much
determination as ever, protectionism remains a very real threat to our
well-being.
In the report of the Advisory Committee on Diversification published
recently, it was forecast that the growth potential of textiles and clothing
/exports in.............