ENG-1958 — Page 21

REVIEW

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Kong. Gradually the method of certification and the list of per- mitted goods were extended and now cover over 100 commodities, ranging from lotus seeds to Chinese junks. The heavy expense incurred by the Government in applying the procedures called for under the Foreign Assets Control Regulations has been justified by a steady rise in exports of these 'presumptive' items. Moreover the embargo has given a distinct boost to the local production of Chinese-type exports which could no longer be sent to the United States if manufactured in China-e.g., embroidered goods, lacquer- ware, hardwood furniture, and foodstuffs. Many new enterprises have actually come into being to meet American demand.

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The many Hong Kong products not affected by the Foreign Assets Control Regulations could still be freely imported into the United States without any special certification, but the market for Chinese-type goods was valuable and they formed a most useful adjunct to the main items of export such as flashlights, basket- ware, gloves and, later, garments. By the beginning of 1958 there were no less than 772 establishments registered with the Commerce and Industry Department for inspection and supervision under the comprehensive certificate of origin system, and the number of certificates issued rose from 8,200 in 1953 to 62,200 in -1958. Furthermore, the percentage of exports to the United States in relation to the Colony's total exports rose from 4% in 1952 to 11% in 1958 and in the latter year the United States imported products wholly or principally of Hong Kong origin to the value of $205.36 million, the majority of which were covered by comprehensive certificates. The United States was in fact the third best customer for the Colony's exports in 1958. It can therefore be said that to some extent at least the difficulties which arose in 1950 proved to be a temporary blessing in disguise.

THE PROMOTION OF INDUSTRY

Hong Kong thus succeeded in making a virtue of its own necessities; and the consequent increase in the industrial potential of the Colony between 1947 and 1952 is illustrated by the fact that in the former year there were 1,050 industrial undertakings employing 64,000 workers and in the latter 2,088 industrial under- takings employing 98,126 workers. In 1947 locally-manufactured