ENG-1955 — Page 78

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HONG KONG ANNUAL REPORT

Factory rehabilitation after almost four years of enemy occupation was rapid, urged on by an acute shortage of goods throughout the whole of war-scarred South-East Asia. A vital year for local industry was 1948, when the influx of refugees from China reached its peak. While most arrived destitute, many brought capital and technical skill which found ready employment in Hong Kong.

When the Korean War and the resultant embargo on trade in strategic materials with China drastically reduced the volume of Hong Kong's commerce, only industrial expansion could ward off the dangers threatening economic stability, and provide employment for a greatly swollen and still increasing population. Local manufacturers reacted quickly to the new situation, and, in spite of difficulties in obtaining certain raw materials, a growing volume and range of Hong Kong goods from many new industries, and from re- invigorated older ones, began to flow out to the world.

Today Hong Kong possesses 2,925 registered and recorded factories, employing a labour force of 129,465 workers. In addition to these registered undertakings, there is a very large number of smaller concerns, many of which pursue handicraft activities of a traditionally Chinese charac- ter, some of which have been set up by refugees. It is estimated that just under 200,000 people find employment in these smaller industrial undertakings.

The variety of goods turned out by local industry is considerable, but, in general, while heavier industries, such as shipbuilding, continue to be important, the Colony has become noted for the price, quality and range of the products of its light industries. Among the most important of these products are cotton piece-goods, cotton yarns, towelling, ready-made garments of all kinds, enamelware, aluminium- ware, torches, torch batteries and bulbs, vacuum flasks, plasticware, paints and varnishes, rubber and leather footwear, and rattanware. Among the traditional Chinese goods produced, brocade piece-goods, embroideries and drawnwork, crocheted gloves and paper novelties are the best-known.

In 1954 exports of local products were valued at £42,617,436. In 1955 this figure rose to £45,644,910, representing 29% of the total value of the Colony's exports. The United Kingdom was the best customer. Although South-East Asian countries are naturally important buyers