XN000022-1980-01-24 — Page 19

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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.............