ENG-1979 — Page 42

INDUSTRY AND TRADE

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Following the Hong Kong economic mission to Japan in November, 1978, a Hong Kong/ Japan Business Co-operation Committee was established in February, 1979. The committee consists of leaders in the fields of industry, trade, banking and shipping and includes the chairmen of the Trade Development Council, the Hong Kong General Chamber of Com- merce, the Chinese Manufacturers' Association of Hong Kong and the Federation of Hong Kong Industries. The Hong Kong/Japan Business Co-operation Committee and its counterpart in Japan aim to foster friendship and understanding between the business communities of Hong Kong and Japan and to promote trade, industrial investment and other economic co-operation. The Hong Kong committee and the Japanese committee are to hold joint meetings at least once a year. The first meeting was held in Hong Kong in March and the second in Tokyo in November.

Textiles and Clothing

The textiles and clothing industries are Hong Kong's largest, together employing about 42 per cent of the total industrial work-force and producing some 43 per cent by value of total domestic exports. The export performance of the spinning and weaving sectors im- proved considerably in 1979 in relation to 1978. Export earnings by the clothing sector improved over 1978, despite the restrictive terms of Hong Kong's current bilateral textiles agreements with the European Economic Community and the United States. Total domestic exports of textiles and clothing in 1979 were valued at $24,196 million, compared with $18,578 million in 1978.

The output of cotton yarn increased from 170 million kilograms in 1978 to 186 million kilograms. Production of man-made fibre yarn and cotton/man-made fibre blended yarn was 48 million kilograms in 1979, compared with 47 million kilograms in 1978, and pro- duction of woollen and worsted yarn was 4.6 million kilograms, compared with 4.5 million kilograms the previous year. Most of the yarn produced was used locally.

The weaving sector, with 31,543 looms, produced 868 million square metres of woven fabrics of various fibres and blends, compared with 788 million square metres in 1978. As in previous years, the bulk of the production 84 per cent - was of cotton. Much of the fabric produced was exported in the piece, but local clothing manufacturers also used large quantities of locally woven and finished fabrics.

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of which 30 per The knitting sector exported 10 million kilograms of knitted fabrics cent were of man-made fibres or blended cotton/man-made fibres, and 68 per cent were of cotton - compared with 9.3 million kilograms in 1978. In addition, a large quantity of knitted fabric of all fibres was used by local clothing manufacturers.

The finishing sector provides sophisticated support facilities to the spinning, weaving and knitting sectors. It handles a large amount of textile fabrics for bleaching, dyeing, printing and finishing. The processes performed include yarn texturising, multi-colour roller and screen printing, transfer printing, pre-shrinking, permanent pressing and polymerising.

The manufacture of clothing is the largest sector of the industry, employing some 260,615 workers or about 30 per cent of the total industrial work-force. Domestic exports of clothing in 1979 were valued at $20,131 million, compared with $15,709 million in 1978.

Other Light Industries

The electronics industry maintained its position as the second largest export-earner among Hong Kong's manufacturing industries. Domestic exports of electronic products in 1979