ENG-1982 — Page 40

INDUSTRY AND TRADE

Industrial Investment Promotion

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The responsibility for advising on overall promotion policy and strategy is vested in the Industry Advisory Board. The task of drawing up a co-ordinated plan of investment promotion activities rests with the Industrial Promotion Committee, a standing committee of the Industry Advisory Board.

Industrial investment promotion missions were undertaken in Australia, Austria, Britain, Denmark, the Federal Republic of Germany, France, Italy, Japan, Norway, Sweden and the United States. These missions were combined, where appropriate, with participation in or visits to industrial and technology exchange fairs. The Industry Department also held a series of investment seminars in Japan and Europe to publicise the investment climate in Hong Kong.

1982 saw the establishment of industrial investment promotion offices in Japan, Britain, West Germany and the United States. Details are at-Appendix 2. These offices enlarge the scope of Hong Kong's overseas industrial promotion activities and are assisted at their home base in Hong Kong by a One Stop Unit which provides the necessary support and follow-up on projects generated by the overseas offices.

Recognising the important role played by local entrepreneurs in Hong Kong's industrial development, the Industry Department placed emphasis on publicising the services of the One Stop Unit locally and organised a series of investment seminars for local industrialists in conjunction with the Chinese Manufacturers' Association of Hong Kong, the Hong Kong General Chamber of Commerce, the Federation of Hong Kong Industries, the Hong Kong Industrial Estates Corporation and the Hong Kong Productivity Centre. A large number of local companies responded and have registered their interests in co-operation with overseas companies.

The United States continued to be the biggest single source of industrial investment in Hong Kong, accounting for some 47 per cent of the total. In second place was Japan with 30 per cent and Britain was in third place with about six per cent of the total. A survey in August 1981 indicated that altogether the companies with overseas interest employed some 90 000 workers, representing about 10 per cent of the total industrial employment in Hong Kong. These companies had a combined output of over HK$17,000 million of which over HK$11,000 million-worth of products was exported, representing some 17

per cent of Hong Kong's domestic exports. The principal activities of these companies are in electronics, textiles, electrical products, chemicals, watches and clocks, and food and beverages.

The Hong Kong/Japan Business Co-operation Committee continued to work closely with its counterpart in Japan. Its activities during the year included the organisation of a series of investment seminars in Japan.

Textiles and Clothing

The textiles and clothing industries are Hong Kong's largest, together employing about 41 per cent of the total industrial workforce and producing some 41 per cent by value of total domestic exports. The spinning and weaving sectors experienced adverse con- ditions in 1982 due to sluggish demand and strong competition. Export earnings by the clothing sector remained stable in 1982, despite the continued implementation of measures contained in the export restraint agreements which Hong Kong has negotiated with the most important of its overseas trading partners. Total domestic exports of textiles and clothing in 1982 were valued at $33,876 million, compared with $33,590 million in 1981.