XN000022-1988-12-21 — Page 2

WEDNESDAY, DECEMBER 21, 1988

EXPORTERS URGED TO SEEK OPPORTUNITIES FOR DIVERSIFICATION

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THE GOVERNOR, SIR DAVID WILSON, TODAY (WEDNESDAY) URGED EXPORTERS TO LOOK FOR OPPORTUNITIES FOR GREATER DIVERSIFICATION, IN TERMS OF PRODUCTS AND MARKETS, AS THEY FACED UP TO THE CHALLENGES THAT LAY AHEAD.

SIR DAVID WAS SPEAKING AT THE ANNUAL HONG KONG EXPORTERS' ASSOCIATION,

CHRISTMAS LUNCH OF THE

HE SAID THAT THOUGH HONG KONG HAD A PHENOMENAL GROWTH OF 37 PER CENT IN TOTAL EXPORTS LAST YEAR, AND EXPORT STATISTICS SO FAR THIS YEAR HAD ALSO BEEN IMPRESSIVE, THE PROSPECTS FOR 1989 MIGHT NOT BE SO BRIGHT.

A GENERAL SLOWDOWN IN THE WORLD ECONOMY HAD BEEN WIDELY FORECAST, WHICH WOULD MEAN STIFFER COMPETITION, AND THERE WAS A GROWING AND CONTINUING THREAT OF PROTECTIONISM IN SOME MAJOR MARKETS.

HOWEVER, HONG KONG'S EXPORTERS HAD FACED AND OVERCOME SIMILAR PROBLEMS IN THE PAST, AND HE WAS SURE THAT THEY WOULD BE ABLE TO DEAL WITH FUTURE CHALLENGES.

SIR DAVID SAID THE GOVERNMENT'S TRADITIONAL POLICY HAD BEEN TO LET EXPORTERS GET ON WITH THE JOB.

"EXPERIENCE HAS SHOWN THAT ATTEMPTS TO INTERFERK WITH MARKET FORCES ARE LIKEY TO DO MORE HARM THAN GOOD," HE SAID.

BUT IT WAS NOT A TOTALLY HANDS-OFF POLICY.

"IN RECENT YEARS, MUCH EFFORT HAS BEEN PUT THE DEVELOPMENT OF NEW PRODUCTS AND THE OPENING

UP AND WE HAVE HAD SOME SUCCESS IN THIS," HE SAID.

INTO

ENCOURAGING

OF NEW MARKETS.

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"IN TERMS OF PRODUCTS, THERE IS A CONTINUING TRADITIONALLY HEAVY RELIANCE ON TEXTILES AND CLOTHING TO OTHER ITEMS."

THE SHARE OF TEXTILES AND CLOTHING IN HONG KONG'S TOTAL DOMESTIC EXPORTS HAD DROPPED FROM 42 PER CENT LAST YEAR TO 38 PER CENT DURING THE FIRST NINE MONTHS OF THIS YEAR.

EXPORTS OF TOYS AND GAMES HAD ALSO FALLEN AS A RESULT OF THE FINANCIAL PROBLEMS ENCOUNTERED BY SOME OF THE MAJOR U.S. BUYERS.

SIR DAVID NOTED THAT EXPORTS OF NEW PRODUCTS SUCH AS TELECOMMUNICATIONS EQUIPMENT, TELEVISION RECEIVERS, AUTOMATIC DATA PROCESSING MACHINES, OFFICE EQUIPMENT AND ELECTRICAL MACHINERY HAD SHOWN TREMENDOUS GROWTH.

/"OUR EXPORTS