XN000022-1994-04-19 — Page 9

TUESDAY, APRIL 19, 1994

"IT PROVIDES A REASONABLE PERIOD FOR HONG KONG'S ECONOMY ΤΟ ADJUST TO A MORE LIBERAL REGIMF, HE SAID.

ON ECONOMIC IMPLICATIONS, MR MILLER ENVISAGED THAT BY THE END OF THE PHASE-OUT, HONG KONG'S TEXTILES AND CLOTHING INDUSTRY WOULD HAVE FOLLOWED THE EXAMPLE OF PLASTICS, TOYS, ELECTRONICS AND OTHERS AND THAT THERE WOULD HAVE BEEN A CONSOLIDATION.

REMAIN

MR MILLER SAID: "KEY ELEMENTS OF INDUSTRY ARE LIKELY TO IN THE TERRITORY, BUT THE MORE LABOUR INTENSIVE JOBS WILL TEND ΤΟ MOVE TO LOWER-WAGE ECONOMIES.

"THE LABOUR FORCE WILL NEED TO ADAPT, BUT THE EXPERIENCE WITH OTHER INDUSTRIES HAS BEEN THAT MORE THAN SUFFICIENT JOBS ARE BEING CREATED IN THE SERVICE SECTOR ALL THE TIME TO TAKE UP ANY SLACK," HE SAID.

MR MILLER ASSURED THAT THE GOVERNMENT STOOD READY TO ASSIST THROUGH INITIATIVES AS THE EMPLOYEES RETRAINING SCHEME.

MR MILLER SAID WHEN CHINA RE-OPENED ITS BORDERS TO TRADE AND INVESTMENT AT THE END OF THE SEVENTIES, HONG KONG ENTREPRENEURS WERE AMONG THE FIRST TO TAKE ADVANTAGE OF THE NEW OPPORTUNITIES NORTH OF THE BORDER.

MOST USED IT AS AN OPPORTUNITY TO EXPAND THE BASE OF THEIR PRODUCTION, HE SAID, ADDING THAT OVER TIME THERE HAS BEEN AN ELEMENT OF RATIONALISATION.

"THUS WHILE OUR MANUFACTURING WORKFORCE HAS HALVED OVER THE LAST 10 YEARS, OUR PRODUCTION HAS INCREASED IN VALUE BY 80 PER CENT, AND OUR MANUFACTURERS

EMPLOY SOMB THREE MILLION WORKERS IN GUANGDONG, HE SAID.

11

ALSO

"MOST INDUSTRIES NOW MANAGE LARGE OFF-SHORE OPERATIONS FROM HONG KONG, HE CONCLUDED.

HOWEVER, MR MILLER SAID, THE TEXTILES AND CLOTHING INDUSTRY IS THE ONE SECTOR OF HONG KONG'S ECONOMY WHICH HAS NOT BEEN ABLE TO TAKE REAL ADVANTAGE OF THESE OPPORTUNITIES.

BEEN AND IS EFFECTIVELY

**THIS IS BECAUSE ITS PRODUCTION HAS TRAPPED INSIDE HONG KONG BY THE COMBINATION OF QUOTA RESTRAINTS AND RULES OF ORIGIN,' HE NOTED.

│

ALTHOUGH SOME OUTWARD

RULES, SO FAR, THERE ARE ONLY INVOLVE ANY OUTWARD PROCESSING,

PROCESSING IS POSSIBLE WITHIN THESE ABOUT 10 PER CENT OF OUR EXPORTS HE ADDED.

"THE RESULT IS THAT THE TEXTILES AND CLOTHING SECTOR IS UNABLE TO MAKE THE MOST EFFICIENT USE OF RESOURCES AVAILABLE ON BOTH SIDES OF THE BORDER AND WE HAVE SEEN SOME MAJOR FACTORIES CLOSE DOWN IN RECENT YEARS, HE SAID.

"THE PHASE-OUT OF THE MFA WILL THEREFORE BRING THE INDUSTRY SOME RELIEF, ALBEIT A LITTLE LATE. TEN YEARS PROVIDE A REASONABLE PERIOD FOR THE WORLD TO ADJUST TO THE NEW REGIME, HE SAID.

"

/"WE WILL