TNAG-0629-FCO40-777-Effect-of-GATT-Multi-Fibre-Arrangement-on-Hong-Kong-negotiat-1988 — Page 220

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In closing sir, may I refer to Mr. Cheong-Leen's call for accelerated diversification of industry outside

the field of textiles. It is, of course, well known that

for many years the textile sector has represented about

50 per cent of our exports and the same share of industrial

employment. This in itself is a remarkable achievement by

that sector which has been set about by more restrictions

than any other. Mr. Tien has drawn our attention, however, to the fact that in the first five months of 1977 when,

as I noted at the beginning of my statement, there was marked slackness of demand in major markets resulting in a 9 per cent decline in textile exports compared with the same period in 1976, the non-textile sector's performance was such that domestic exports registered an overall increase of over 7 per cent.

I do not put this forward as something on which to be complacent but, while assuring this Council that the Government will continue to defend the interests of

the vital textiles sector with all possible vigour, I suggest it is heartening to note that Hong Kong industry continues to demonstrate its flexibility and is steadily spreading its base.