TNAG-0629-FCO40-777-Effect-of-GATT-Multi-Fibre-Arrangement-on-Hong-Kong-negotiat-1988 — Page 105

FCO40 Hong Kong Department Records 聯邦事務部香港部檔案 All

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growth under the present agreement projected forward

to 1978 (see paragraph 2.3.1) could be as high as

24,000. Thus altogether a total of 34,000 people

could be involved, and this would represent 4.5%

of the manufacturing labour force. This number is

about 1.8% of the total labour force, implying that

the unemployment rate could be increased by nearly

two percentage points. This represents an increase

of about 35% in the average number of people

unemployed during 1976.

4.3

Also, there will certainly be secondary

effects on employment in related manufacturing and

commercial sectors (for example, weaving and export

firms).

4.4.

Increases in demand for textile and clothing

products in markets other than the EEC and increases in

demand for products in the non-textile and non-clothing

sectors would be unlikely to absorb readily the surplus

labour so generated. A large proportion of the former

would still be under restraint and, as is suggested in

section 3 above, might be influenced by the cut-back

in quota levels proposed by the EEC. The latter, a

move of labour into other manufacturing industries,

would be hampered by the need to acquire different skills.

/Furthermore

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