(a)
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Manufacturers/exporters were busy rushing out shipments to utilize as much of their present quota as possible so that they could have an advantageous base-line for allocations next year. Medium-scale and small-size operators in this line of business were however moaning and groaning much more as the had much less financial capability or resources for manueovre and adjustments. There
was occasional talk of some small factories
closing down or going out of business because of "the squeeze on quotas".
(e) Some respondents observed that it was not easy for
the older workers to change trade, especially those who had developed specialised skills from long experience. Despite the admittedly high mobility of labour in Hong Kong, and the satisfactory overall performance of Hong Kong industries and exports, the authorities, they maintained, should not under-estimate the unavoidable adverse effects
that such setbacks would have on the income of
some working class families. Such effects would probably not be fully felt until many months later, and the Government should keep a vigilant eye on subsequent developments in such problematic
sectors.
(f) Respondents on this line of business pointed out that the real and much greater threat lay in the
unknown attitude of the US Government towards the
prevailing trend of protectionism. Should the Carter Administration decide to follow the EEC example vis-a-vis Hong Kong exports to the States, Hong Kong would be in serious trouble. Informed circles were therefore watching the coming talks between the US representatives and the Hong Kong Government (scheduled for mid-January) with close interest and concern.
B Signs of prosperity still remain
(a)
Tourism enjoyed a highly prosperous 1977. Hotel room occupancy rate was a record high. Consequently, the
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