CONFIDENTIAL

0003230

G. F. 323

·5-

involved ($1.9 million) of which only $180 thousand went to the U.K. By 1966, however, the position had changed and

unknown

Value

Tariff

U.K.

$5.9 million

nil

Indonesia

$2.9 million

W. Germany

$1.2 million

U.S.A.

$800 thousand

20% a.v.

12.5% - 37.5% a.v.

were the principal export markets out of total exports valued at $17.3 million. Commonwealth preference has probably been an important factor in the export growth of this item since 1961. The imposition of the C.E.T. of 20% a.v. (not affected by the Kennedy Round), while perhaps leaving a substantial trade in being, may affect export performance in the U.K. market. The industry considers that competition will be particularly keen from Taiwan whose cheaper labour and raw materials provide prices which are very much lower than Hong Kong's.

Footwear (except slippers and house footwear) wholly

or mainly of plastic materials (851 015)

As with the previous item, export performance has changed considerably since 1961 when

Ghana

Sierra Leone

$2.9 million

31.5 million

were the principal markets out of total exports valued at $7.8 million. By 1966 -

Value

Tariff

U.K.

$18.8 million

nil

Aden

$2.1 million

Libya

Jordan

31.8 million

0835 thousand

nii

10% a.v.

65% a.v.

had become the principal markets out of total exports valued at $34 million. The U.K. preference rate has again probably been a significant factor in assisting the performance of this item in the U.K. market. Imposition of the C.E.T. of 20% a.v. (also to remain unchanged after the Kennedy Round) would clearly affect this performance. Exports to the E.E.C. were valued at only $1 million of which $760 thousand went to W. Germany. Here again, the industry considers that Hong Kong is likely to find serious difficulties in the face of competition from Taiwan.

CONFIDENTIAL

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