TNAG-0162-FCO40-198-Export-of-textiles-to-Norway-and-Sweden-1969 — Page 60

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G.F. 323

CONFIDENTIAL

In spite of this dependence on exports, indeed in some

.

ways because of it, we maintain our trade on fully commercial lines.

The Government gives no help, financial or otherwise, to our

industries and gives no subsidies for exports. If our prices are

competitive, they are so for commercial reasons only. And they are

so in spite of some expensive disadvantages such as expensive power,

expensive money, expensive land and the need to import all our raw

materials. Even Hong Kong's greatest asset, its labour, can no

longer be described as cheap. Wages have more than doubled in the

past ten years and are probably now the second highest in Asia,

second, that is, to Japan.

I very much hope that, while you are in Hong Kong, you

will be able to devote some time to having a look around at what we

have achieved and the difficulties we have had to overcome. Much

yet remains to be done. Particularly, of course, we would like to

show you and your advisers a cross section of our textiles industry,

its most modern, and its most primitive if you like. If you have the

time, we can easily organise something for you. You will notice

that we have proposed that there should be one free day in your

programme.

It follows from this dependence on exports of textiles that

our textiles industries take a very great interest on consultations

about Hong Kong's exports. They advise the Government on matters

affecting them, through the Cotton Advisory Board of which I am Chairman.

We have given no publicity to the present consultations, as you know.

But we have told the Cotton Advisory Board and have sought their

advice on your proposals throughout. As the consultations develop

this week, I shall no doubt have to seek their advice again.

probably do this on your free day. You will be meeting members of

the Board socially, particularly at the dinner on Friday night.

We will

But interest in Hong Kong's textiles exports is by no means

confined to the Cotton Advisory Board or to the textiles industry.

Because of Hong Kong's dependence on exports generally and exports of

textiles in particular, controls on Hong Kong's exports of textiles

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CONFIDENTIAL

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