XN000022-1978-06-03 — Page 2

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SATURDAY, JUNE 3, 1978

TRADE FIGURES ANALYSED BY INDUSTRIAL ORIGIN

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THE CENSUS AND STATISTICS DEPARTMENT WILL INCLUDE QUARTERLY TRADE FIGURES ANALYSED BY INDUSTRIAL ORIGIN IN THE HONG KONG EXTERNAL TRADE REPORT AS FROM THE FIRST QUARTER OF THIS YEAR.

A SPOKESMAN FOR THE DEPARTMENT SAID THE PRACTICE IS IN ACCORDANCE WITH THE UNITED NATIONS INTERNATIONAL STANDARD INDUSTRIAL CLASSIFICATION OF ALL ECONOMIC ACTIVITIES (1.S.I.C 1968 EDITION.

+THIS SERIES IS DERIVED BY RE-GROUPING EACH SIX-DIGIT COMMODITY ITEM OF THE UNITED NATIONS STANDARD INTERNATIONAL TRADE CLASSIFICATION (S.I.T.C.) TO THE INDUSTRY OF WHICH THE COMMODITY IS A PRINCIPAL PRODUCT,+ THE SPOKESMAN SAID.

HE POINTED OUT THAT THE CLASSIFICATION BY PRODUCER INDUSTRY IS NECESSARY IN ORDER TO STUDY IMPORT PENETRATION, TO EXAMINE CHANGING RELATIVE IMPORTANCE OF INDIVIDUAL INDUSTRIES BASED ON EXPORT SALES, TO COMPARE WITH SALES DATA COLLECTED FROM INDUSTRIAL ENQUIRIES AND TO CONSTRUCT COMMODITY FLOW TABLES.

EXPLAINING LIMITATIONS OF THIS ANALYSIS, THE SPOKESMAN

SAID THAT UNDER THE PROCEDURE FOLLOWED FOR CLASSIFICATION

BY INDUSTRY, EXPORTED COMMODITIES REQUIRING SEVERAL INTERMEDIATE PROCESSING STAGES ARE WHOLLY ALLOCATED TO THE INDUSTRY TO WHICH THEY ARE FINALLY CLASSIFIED, BUT THIS INDUSTRY WILL NOT NORMALLY BE THE SOLE CONTRIBUTOR TO THE OVERALL EXPORT VALUE.

+SECONDLY, CLASSIFICATION OF CERTAIN EXPORTED GOODS TO A PARTICULAR INDUSTRY DOES NOT IMPLY THAT ALL SUCH COMMODITIES ARE ACTUALLY PRODUCED BY ESTABLISHMENTS OF THAT INDUSTRY, SINCE SOME MAY BE SECONDARY PRODUCTS PRODUCED BY ESTABLISHMENTS CLASSIFIED ELSEWHERE.

+THIRDLY. ALTHOUGH THE VALUE OF IMPORTS OF A PARTICULAR COMMODITY IS ATTRIBUTED TO THE INDUSTRY OF WHICH THE COMMODITY IS A PRINCIPAL PRODUCT, THIS DOES NOT IMPLY THAT THE INDUSTRY IS NECESSARILY THE IMPORTER, THE SPOKESMAN SAID.

UCTS

ACCORDING TO THE RE-CLASSIFICATION DONE FOR THE FIRST QUARTER OF THIS YEAR, 74 PER CENT IN VALUE OF DOMESTIC EXPORTS ARE ACCOUNTED FOR BY FOUR INDUSTRY GROUPS WEARING APPAREL, TEXTILES, ELECTRICAL MACHINERY AND APPARATUS, AND PLASTIC PRODUCTS - WITH THEIR SHARES BEING 28 PER CENT, 19 PER CENT, 18 PER CENT AND NINE PER CENT RESPECTIVELY.

AS REGARDS IMPORTS. ABOUT HALF CF THEIR VALUE IS CONCENTRATED IN FOUR INDUSTRY GROUPS WHICH ARE TEXTILES, ELECTRICAL MACHINERY AND APPARATUS, CHEMICAL AND CHEMICAL PRODUCTS, AND FOOD PRODUCTS.

/THE FOLLOWING