XN000022-1983-03-08 — Page 2

TUESDAY, MARCH 8, 1983

HONG KONG A POTENTIAL MARKET FOR US FABRICS

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THE SECRETARY FOR TRADE AND INDUSTRY, MR E.P. HO TODAY (TUESDAY) INVITED AMERICAN TEXTILES MANUFACTURERS TO TAKE A GREATER SHARE OF HONG KONG'S GROWING MARKET FOR FABRICS AND FURNISHINGS.

HE WAS OFFICIATING AT THE OPENING CEREMONY OF THE SECOND US HOME FURNISHINGS EXHIBITION, ORGANISED BY THE AMERICAN TEXTILE MANUFACTURERS INSTITUTE, AT THE HILTON HOTEL.

WELCOMING BACK LEADING MEMBERS OF THE INSTITUTE WHO VISITED HONG KONG IN FEBRUARY LAST YEAR TO ASSESS HOW BEST TO PROMOTE SALES OF US TEXTILE PRODUCTS IN HONG KONG, MR HO SAID: +ALTHOUGH THE WORLD ECONOMIC RECESSION, FROM WHICH HONG KONG HAS ENJOYED NO IMMUNITY COMBINED WITH THE EFFECTS OF A STRONG US DOLLAR, HAS SINCE PROVIDED A DIFFICULT CLIMATE FOR US EXPORTS TO HONG KONG, THE GROUNDWORK HAS BEEN LAID AND SHOULD YIELD POSITIVE RESULTS IN THE BETTER TIMES WHICH WE BELIEVE SHOULD LIE AHEAD.

+AS HONG KONG IS ONE OF THE WORLD'S LARGEST IMPORTERS OF YARNS AND FABRICS - TAKING US$2.6 BILLION WORTH IN 1982 - I FEEL SURE THAT ATMI MEMBERS WILL WISH TO PERSEVERE IN THEIR EFFORTS HERE.+

MR HO ASSURED THE MISSION MEMBERS, WHOSE EXHIBITION CONCENTRATED ON HOME FURNISHINGS AND FLOOR COVERINGS, THAT HONG KONG PROVIDED A SIZEABLE MARKET FOR THESE PRODUCTS, WITH 1982 IMPORTS VALUED AT OVER US$219 MILLION.

TO ILLUSTRATE THE +THE US MARKET SHARE IS SMALL BUT GROWING. POTENTIAL FOR GROWTH, I WOULD MENTION THAT BETWEEN NOW AND THE END OF 1985 EIGHT NEW HOTELS ARE EXPECTED TO OPEN IN HONG KONG, PROVIDING 2 360 ADDITIONAL ROOMS.+

+

MR HO STRESSED THAT ALTHOUGH HONG KONG HAD AN IMPORTANT HOME FURNISHINGS INDUSTRY, THE GOVERNMENT AFFORDED IT NO PROTECTION OR

+ALL OUR TRADING SPECIAL ADVANTAGE WITHIN THE HONG KONG MARKET. PARTNERS HAVE UNRESTRICTED ACCESS TO OUR MARKET AS WELL AS EQUAL OPPORTUNITIES WITHIN IT, HE ADDED.

TURNING TO HONG KONG'S TEXTILE TRADE HE NOTED THAT IT DID NOT ENJOY THE SAME UNRESTRICTED ACCESS TO ITS MAIN EXPORT MARKETS OVERSEAS.

+OF COURSE, WE ARE REALISTIC ENOUGH TO RECOGNISE THAT THE TYPE OF RESTRAINTS WE HAVE LIVED WITH FOR MANY YEARS ON OUR OWN EXPORTS OF TEXTILES AND GARMENTS ARE NOT LIKELY TO BE REMOVED OVERNIGHT.

+WHAT IS OF CONCERN, HOWEVER, IS THAT THE CURRENT GENERATION OF BILATERAL RESTRAINT AGREEMENTS, NEGOTIATED IN THE DEPTHS OF ECONOMIC RECESSION, HAVE GREATLY REDUCED THE POTENTIAL FOR DEVELOPMENT OF THOSE HONG KONG INDUSTRIES WHICH ACCOUNT FOR ONE THIRD OF OUR DOMESTIC EXPORTS AND EMPLOY 40 PER CENT OF OUR INDUSTRIAL WORK FORCE.

/+NATURALLY, WE