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countries to argue that Hong Kong should not be regarded as
a developing country.
Non-textile commodities
11.
The effect of Britain's entry into the E.E.C. on Hong
Kong's exports of commodities other than textiles was then
considered:-
12.
(i) Stainless steel cutlery
Mr. Haddon-Cave said that in 1961 Hong Kong had only
three markets:
South Africa United Kingdon
Canada
E.E.C.
(Hong Kong dollars)
93,000 208,000
60,000
Total Exports
NIL
646,000
In 1966 the South African market had disappeared and the
main exports were to:-
United Kingdom E.E.C.
Total exports
10.5 million
1.5 million
14.5 million
Exports of these items were, therefore, heavily dependent on the British market. Of the HK$1.5 million worth going to E.E.C. HK$1.1 million went to the Netherlands, and HK.4 million to West Germany over a common external tariff of 19 per cent (pre and post-Kennedy Round).
13. Sir A. Snelling suggested that if Mr. Haddon-Cave's point about using Britain as a proving ground was valid, it should not be impossible to surmount the c.c.t. and break into
E.E.C. markets. Mr. Darlington pointed out that competition in the U.K. had been reduced by a voluntary agreement which limited Japanese cutlery imports. He also suggested that, as Hong Kong cutlery appeared to retail at about one-quarter to one-third of the prices of comparable British products, Hong Kong should be able to absorb the increase in duty.
/14.
CONFIDENTIAL