XN000022-1974-08-29 — Page 2

THURSDAY, AUGUST 29. 1974

SECOND ECONOMIC REPORT PUBLISHED

CONTINUED GROWTH IN DOMESTIC EXPORTS BUT A REDUCTION IN THE DEMAND FOR LABOUR AND THE ADVERSE EFFECTS OF RAPIDLY RISING WORLD PRICES ARE SOME OF THE MAIN POINTS REVIEWED IN THE LATEST ISSUE OF THE ECONOMIC REPORT.

THE REPORT IS PREPARED THREE TIMES A YEAR, IN APRIL, JULY AND OCTOBER AND COMPLEMENTS +THE BUDGET: ECONOMIC BACKGROUND+ PUBLICATION PREPARED IN JANUARY.

THE CURRENT ISSUE, DATED JULY, INCLUDES A REVIEW OF ECONOMIC DEVELOPMENTS, GENERALLY UP TO AND INCLUDING THE FIRST QUARTER OF 1974. IT ALSO CONTAINS A STATISTICAL SECTION AND A CALENDAR OF EVENTS.

THE REPORT STATES THAT SOME 80 TO 85 PER CENT, BY VALUE, OF HONG KONG'S MANUFACTURING PRODUCTION IS EXPORTED AND THAT, ALTHOUGH THE QUANTITY OF DOMESTIC EXPORTS IN THE YEAR ENDING MARCH 1974 INCREASED BY SOME EIGHT PER CENT, THE PRESSURE OF DEMAND FOR LABOUR SLACKENED CONSIDERABLY OVER THE YEAR.

REGISTERED AND RECORDED MANUFACTURING EMPLOYMENT DECLINED BY ABOUT ONE-AND-A-HALF PER CENT DURING THE YEAR AND THERE WAS A NOTICEABLE DROP IN REPORTED VACANCIES. VAGE RATES IN MANUFACTURING INDUSTRY INCREASED AT A SLCVER RATE 8 PER

CE.JT

-

THAN IN THE PREVIOUS YEAR WHEN THEY ROSE BY 11 PER CENT.

PUBLISHED FOR THE FIRST TIME ARE QUARTERLY INDEXES OF HONG KONG'S EXTERNAL TRADE BY MAJOR TRADING PARTNERS IN BOTH PRICE AND VOLUME TERMS.

THE FIGURES SHOW THAT IN THE FIRST QUARTER OF 1974, DOMESTIC EXPORTS OF ELECTRONIC COMPONENTS WERE HIGHER, IN QUANTITY TERMS, THAN IN ANY QUARTER DURING THE PREVIOUS TWO YEARS, AND 51 PER CENT HIGHER THAN IN THE CORRESPONDING PERIOD OF 1973.

OTHER COMMODITY GROUPS FOR WHICH THE QUANTITY OF DOMESTIC EXPORTS INCREASED AT A FASTER THAN AVERACE RATE IN THE FIRST QUARTER INCLUDE WATCHES AND CLOCKS C34 PER CENT), HETAL MANUFACTURES (18 PER CENT), TEXTILE YARN AND THREAD C21 PER CENT), TEXTILE FABRICS (8 PER CENT), AND TRANSISTORISED RADIOS C7 PER CENT).

ON THE OTHER HAND THE QUANTITY OF CLOTHING EXPORTED DECLINED BY 9 PER CENT OVERALL AND BY 28 PER CENT IN THE AMERICAN MARKET.

"THE REPORT