XN000022-1983-10-16 — Page 2

SUNDAY, OCTOBER 16, 1983

ROLE OF CLOTHING INDUSTRY STRESSED

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HONG KONG'S CLOTHING INDUSTRY HAS CONSISTENTLY ACCOUNTED FOR WELL OVER A THIRD OF THE TOTAL VALUE OF OUR DOMESTIC EXPORTS AND HAS EMPLOYED OVER A QUARTER OF OUR INDUSTRIAL WORK FORCE, REMARKED THE CHIEF SECRETARY, SIR PHILIP HADDON-CAVE AT THE FASHION PRESENTATION FOR HONG KONG WOOL KNITWEAR '84 ORGANISED BY THE HONG KONG TRADE DEVELOPMENT COUNCIL THIS EVENING.

SIR PHILIP SAID THE FACT THAT THE CLOTHING INDUSTRY HAD RETAINED ITS RELATIVE IMPORTANCE IN THIS WAY, DESPITE A 27-FOLD INCREASE IN THE TOTAL VALUE OF HONG KONG'S DOMESTIC EXPORTS OVER THE SAME PERIOD OF 20 YEARS WHICH REFLECTED THE VIGOROUS RESPONSE OF LOCAL MANUFACTURERS TO UNHINDERED MARKET FORCES.

+WHEN FACED WITH LOW COST COMPETITION FROM OTHER SUPPLIERS IN THE REGION AND ELSEWHERE, INSTEAD OF PLEADING DISTRESS -- AND RUNNING THE RISK OF THE GOVERNMENT BEING SYMPATHETIC -- OUR MANUFACTURERS HAVE CONTINUOUSLY INVESTED AND REINVESTED IN THE LATEST EQUIPMENT, REVAMPED THEIR PRODUCTION LINES, RESPONDED TO CHANGING FASHIONS AND EXPLORED THE USE OF NEW FIBRES AND FABRICS,+ HE SAID.

COMMENTING ON THE CLOTHING INDUSTRY'S TOTAL EXPORT EARNINGS, SIR PHILIP SAID, IN 1982 OUR TOTAL DOMESTIC EXPORTS WERE VALUED AT A RECORD $83 BILLION, EXPORTS OF HONG KONG MADE CLOTHING WERE VALUED AT A RECORD $28.8 BILLION AND EXPORTS OF HONG KONG MADE KNITWEAR WERE VALUED AT A RECORD $9.4 BILLION.

SIR PHILIP ALSO SAID THERE COULD BE NO DOUBT THAT FREE TRADE WAS ONE OF THE GREATEST BLESSINGS WHICH GOVERNMENTS COULD CONFER ON MANKIND.

+1 ACCEPT THAT, IN HONG KONG, OUR VERY CIRCUMSTANCES DICTATE THE CASE FOR FREE TRADE.

+BEING SO EXTERNALLY ORIENTED, SO RESOURCELESS, WE HAVE TO BUY IN ORDER TO PRODUCE SO THAT WE MAY SELL IN ORDER TO EARN OUR LIVING.

*BUT WE ARE PHILOSOPHICALLY COMMITTED TO FREE TRADE TOO, BE IT PRINCIPLE OR EXPEDIENT, JUST AS WE ARE COMMITTED TO THE FREE ENTERPRISE SYSTEM, HE SAID.

THE FASHION SHOW AND OTHER EVENTS OF THE HONG KONG WOOL KNITWEAR '84, ORGANISED BY THE TRADE DEVELOPMENT COUNCIL IN COLLABORATION WITH THE HONG KONG INTERNATIONAL WOOL SECRETARIAT, WAS EVIDENCE OF THIS COMMITMENT TO FREE TRADE, HE ADDED.

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