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(especially in the United States and Western Germany). Other products,
such as electronics and synthetic textiles, are also showing a considerable
expansion.
Well over a half of Hong Kong's exports go to three markets
(the United States, the United Kingdom and Western Germany) and sales to
some other countries in Western Europe are also increasing quickly.
4.
Despite the export success story it must be emphasized that the
Colony consistently imports more than she exports (this is of course
the mechanism through which she imports outside capital). A large
part of this is food (a considerable amount from Mainland China),
but Hong Kong is providing a large and growing market for Western
manufactured products. As explained above these are for the most part
imported duty free and the market is fiercely competitive.
Restrictions on Hong Kong's Exports
5. The success of Hong Kong's exports has led to counter pressure
from industries in importing countries affected by her competition
for import restrictions and/or voluntary restraint on the part of the
Hong Kong industries concerned. They have alleged that Hong Kong,
by the low cost at which she can supply, is disrupting their markets.
The major field in which this pressure has developed is cotton
textiles, still Hong Kong's chief export. During the late 1950s
Hong Kong's exports of cotton textiles to the United Kingdom were
increasing rapidly, stimulated by their eligibility for Commonwealth
duty free entry. In 1958/9, under considerable pressure from the
Lancashire industry, backed up by H.M.G., the industry in the Colony
agreed to limit its exports of cotton piece goods to this country at
100 million square yards. These voluntary restrictions were later
extended to yarns, made-up goods and garments (6.3 million lbs. of yarıı
and 85 million square yards of made-up goods and garments). More
detailed measures of categorisation were agreed in 1964. Similar
agreements were also concluded with India and Pakistan and later with
After a long period of negotiation in London,
some other countries.
Hong Kong and Geneva the British Government have recently introduced
a more comprehensive scheme limiting our imports of all low cost
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/cotton