ENG-1947 — Page 87

shortage of textiles. During the year, the industry consumed 20,000,000 lbs. of yarn which is the equivalent of about 80 million yards of cloth.

In the earlier part of the year, exports of textiles and knit- wear were largely to territories in South East Asia, with Malaya, Siam and the Netherlands East Indies as the largest purchasers. But later, former markets elsewhere began to be reached again and there was a substantial movement of exports to South, East and West Africa as well as to new markets, notably in the Middle East. Towards the end of the year, the United Kingdom agreed to issue import licences for token quantities of knitwear from Hong Kong.

The textile industry in Hong Kong has been handicapped in the last two years by having to rely entirely on imported yarn. There is no shortage of raw cotton in the world and with a properly integrated industry, including spinning mills, much better use could have been made of the opportunities offered by present conditions. Manufacturers are beginning to realise the truth of this, and recently two cotton spinning mills, operating 7,500 spindles each, have been established and are about to go into production. Plans have been laid for the construction of two further mills of 15,000 and 25,000 spindles: capacity respectively and there are indications that other cotton milling concerns, to bring the total capacity of the Colony to 100,000 spindles, are preparing to go into operation. Lack of suitable sites, shortage of water and the scarcity of skilled labour are among the difficulties to be overcome.

To cope

with the last of these problems it is proposed to import a nucleus of skilled workers from Shanghai and to train local labour for the work. It is too early to pre-judge the success of these ven- tures, but if they are successful they will do much to put the textile industry on a sounder basis.

Rubber Shoe Industry.

This industry has had a fairly quiet year with a few bright moments such as the purchase by the Chinese Government of several million pairs of rubber shoes for the Chinese Army, and the agreement of the United Kingdom to import about 2 million pairs early in 1948. Production varies from about 30 per cent of pre-war capacity in some of the smaller factories, to 80 per cent in the larger ones. Two of the biggest concerns have not yet resumed production. There has been a fairly steady but limited market in local territories, but a particularly lucrative export market in the Philippines was closed towards the end of the year by the imposition of penal import duties there. In most of its old markets in Africa, the industry is feeling the competition of manufacturers in Europe and South Africa as prices are still comparatively high. The speculative element which was in evidence in the industry during 1946 has now largely disappeared.

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