CONFIDENTIAL
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4.
Despite quota restrictions and negotiated trading restraints, the value of our domestic exports has continued to grow.
In 1969, the total provisional value of Hong Kong's recorded visible trade was over $28,000 million (£1,900 million). The value of domestic exports increased by 24.8% over the previous year, which compares with an average compound growth rate of 14.3% for the years 1961 to 1966, an increase of 16.9% in 1967, and of 25.8% in 1968. Our principal markets remain the U.S.A., Britain and Germany. Ready-made clothing leads the list of exports, and progress is being made in the field of high fashion. Toys, wigs, electronic appliances and other textile products are also being successfully exported.
5.
Part of this growth is the result of the rising value of our exports, rather than increased volume, and is due not only to "trading up" but also to inflationary conditions in our major markets. The constant danger of additional restrictions and impediments to our trade, however, still remains: and in this connection we were, of course, interested in the final outcome of the discussions on the future of the Long Term Cotton Textile Arrangements which were initiated during the year. The attempts by the United States to force agreements with exporting countries to limit exports of all textile products have also caused us some concern since the visit of Mr. Maurice Stans, U.S. Secretary of Commerce, to the Colony in May.
6.
Industrial development during the year put severe pressure on available industrial accommodation; though it is hoped that the large amount of factory space now being built, much of it for flatted factories, will go far to This relieve the shortage over the next twelve months. expansion has taxed the resources of labour in many industries, and the general level of wages at September 1969 (the most recent figures available) rose by 14% over the previous twelve months. All the indications are that this rise is continuing. Over the same period the Consumer Price Index rose by about 3%; thus the steady improvement in real wages which has been such an encouraging feature of recent years has been maintained.
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