ENG-1968 — Page 24

4

PROGRESS

despite the troubles and in the teeth of the pessimistic forecasts of some observers. In 1968 exporters went still further, with monthly figures showing average increases nearer 25 per cent. By any standards, and especially in the light of the high levels already attained, this further growth was quite outstanding. Clothing con- tinued to lead the export field in total value. Textiles, which formed the original foundation for Hong Kong's industrial era, were a good second. Particularly fast growth continued in the toy industry and in the fields of electronics and wigs.

There are many reasons for this progress, the details of which are too many for this short review. In essence, however, the principal factor was sheer effort by all concerned. Established factories either expanded their premises and labour force or improved productivity. One indication of this growth was the consumption of electricity for industrial purposes, which rose from an index of 100 in March 1967 to 130 in September 1968. The two electricity companies were involved in major expansion and development to meet the predicted demand in all sectors. In Kowloon, Kwun Tong and Tsuen Wan, where there is the greatest industrial development, installed power station capacity will have been doubled in six years by 1971 giving a maximum capacity of 1,142 megawatts. On the Island the comple- tion of an improved distribution system using overhead cables and, as in all developed countries, introducing the lattice pylon to virgin hillsides, will enable the power companies to meet the rising require- ments of the commercial and domestic sectors. As in all developed countries, there are two points of view about the aesthetic aspects of a grid, but only one about the need for the service.

There were some exceptions to the general trend of expansion. The lull in the building industry continued, although towards the end of the year there were signs of it picking up again. One particular result of this lull was less demand for the products of the steel in- dustry. This industry had, in recent years, overexpanded. It had difficulties in competing with products imported from Japan and China and little progress was made in finding new overseas markets. Thus the steel industry worked well below its full capacity. This industry however was an exception; in other sectors the planning of entirely new factories proceeded apace and others were established. One notable addition was a watch-band factory which will produce