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INDUSTRY AND TRADE

impetus of the protectionist lobby. Considerable support was evident in the United States Congress for broad legislation to bring about so-called 'fair' trade. (Fortunately, there were signs of overdue recognition of Hong Kong's open market and fair trading practices, as a result of which the emerging legislative proposals, while unwelcome, did not pose a direct serious threat to Hong Kong. Of much greater concern was the proposed Textile and Apparel Trade Act 1987, the enactment of which would result in the abroga- tion by the United States of the international obligations under its existing bilateral textiles agreements. Again, however, there were signs of recognition in Congress that further protection for the American textile industry was unwarranted. By the end of 1987 it appeared unlikely that the measure could attract enough support to override a presidential veto.)

Hong Kong continued to participate actively in talks in the General Agreement on Tariffs and Trade (GATT) in Geneva. The Uruguay round of multilateral trade negotia- tions gained headway in 1987. While it was too early to predict how successful this round would be, the level of activity in Geneva was a clear indication of the importance attached by contracting parties to the many subjects discussed.

Textiles and Clothing

Textiles and clothing make up Hong Kong's largest industry, accounting for about 42 per cent of the total domestic exports and about 43 per cent of the industrial employment. Domestic exports of textiles and clothing in 1987 were valued at $81,326 million, compared with $63,117 million in 1986.

The spinning sector produces a variety of yarns. Cotton yarn remains the dominant product despite the increase in production of man-made fibre-blended yarns in recent years. The output of yarn of all fibres in 1987 was 232 million kilograms, compared-with 198 million kilograms in 1986. Most of the yarn produced was used locally.

The weaving sector, with 22 819 looms, produced 885 million square metres of woven fabrics of various fibres and blends, compared with 801 million square metres in 1986. The bulk of the production - 96 per cent - was of cotton. A major proportion of the locally woven and finished fabrics was purchased by local clothing manufacturers.

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The knitting sector exported 64 million kilograms of knitted fabrics in 1987 – of which 23 per cent was of man-made fibres or blended cotton man-made fibres, and 76 per cent was of cotton compared with 42 million kilograms in 1986. In addition, a large quantity of knitted fabric of all fibres was used by local clothing manufacturers.

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The finishing sector provides sophisticated support facilities to the spinning, weaving and knitting sectors. It handles a large amount of textile fabrics and yarns for bleaching, dyeing, printing and finishing. The processes include yarn texturising, mercerising multi- colour roller, rotary and screen printing, heat transfer printing, sanforising, stone- wash, acid-wash, permanent pressing, polymerising, shearing, napping, glazing and schreinering.

Clothing is the largest single sector of the industry, employing some 298 130 workers or about 34 per cent of the industrial employment. Domestic exports of clothing in 1987 were valued at $65,321 million, compared with $52,162 million in 1986.

Electronics

The electronics industry is the second largest export-earner after clothing. Domestic exports of electronics products in 1987 were valued at $42,048 million, compared with

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