ENG-1974 — Page 42

INDUSTRY AND TRADE

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Hong Kong Productivity Centre received no greater response from small industrialists in 1974 than in the previous year, despite two series of modifications of its terms and conditions being introduced in November 1973 and October 1974. Loans approved since the inception of the scheme total $1,441,000, of which $549,500 was authorised in 1974. The scheme, which is on trial for three years, was designed to provide medium- term financing at reasonable rates to small factories for modernising their equipment and machines to improve efficiency and output. The lack of enthusiastic support cast serious doubts on the need of small industry for an additional source of medium-term finance for machine replacement purposes.

External Trade

Hong Kong's total trade reached $64,156 million in 1974 compared with $55,004 million in the previous year. Imports were valued at $34,120 million, compared with $29,005 million; domestic exports $22,911 million, compared with $19,474 million; and re-exports $7,124 million, compared with $6,525 million. Summary foreign trade statistics, including a breakdown by countries and commodities and comparisons with the previous years, are contained in Appendices 3 and 4.

Hong Kong is almost entirely dependent on imported resources to meet the needs of its 4.2 million people and the extensive requirements of its diverse industries. Al- though domestic supplies of agricultural produce and fish are substantial, imports of foodstuffs amounting to $6,272 million, or 18 per cent of total imports, constituted the major part of our food consumption. The principal items were rice and other cereals, live animals, fruit and vegetables, fish and fish preparations, meat and meat preparations and dairy products and eggs. Imports of raw materials and semi- manufactures valued at $13,950 million, or 41 per cent of total imports, included textile fibres, yarn and fabrics, base metals, plastic moulding materials and paper and paperboard. Imported capital goods totalling $4,293 million, or 13 per cent of total imports, were mainly machinery and transport equipment, while retained imports of consumer goods were composed largely of consumer durables and textile made-ups. As the world began to experience the full effects of the oil crisis with its escalating prices, the cost of Hong Kong's fuel imports increased phenomenally. Nevertheless, fuel imports still represented only six per cent by value of total imports in 1974.

Japan continued to be the principal supplier of imports in 1974, providing 21 per cent of the total. China came second, supplying 18 per cent of total imports and 49 per cent of all imported foodstuffs. The United States supplied a further 14 per cent. Other important sources of imports were Britain, Singapore, Taiwan, West Germany, Switzerland, South Korea and Thailand.

Domestic exports consisted almost entirely of manufactured goods, emphasising the importance of the manufacturing sector in Hong Kong. Textile and clothing exports accounted for 50 per cent of the total, while sales of miscellaneous manu- factured articles, mainly toys and dolls, artificial flowers, jewellery and goldsmiths' and silversmiths' wares, umbrellas and metal watch bands, made up an additional 16 per cent. Exports of electrical machinery, apparatus and appliances, mainly tran- sistorised radios, electronic components and parts for computers, transistors, diodes, and semi-conductor integrated circuits, accounted for a further 14 per cent. Other