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14. Mr. Haddon-Cave replied that in the E.E.C. Hong Kong
would be competing with the Japanese possibly on a quota basis and added that an increase in tariffs would depress profits and wages with unfortunate social and political results. 15. Sir A. Snelling remarked that there appeared to be scope for a rise in prices in which the consumer and retailer would
share.
16.
(ii)
Optical goods
Exports in 1961 totalled HK$1.7 million (HK$1.4 million to U.K.): in 1966 they were HK$19 million (HK$4 million to U.K.). These items were doing well in E.E.C. in spite of
the c.e.t.
(iii)
Footwear
17.
Taking as an example footwear with cotton uppers and rubber soles, Mr. Haddon-Cave said that these had always sold well in the U.K.: in 1961 she took HK$30 million of total exports of HK$53 million (Benelux and West Germany took about HK$6 million). In 1966 Britain took HK$38 million of a total of HK$79 million (Benelux and West Germany HK$14 million).
Whilst the c.e.t. would not kill the U.K. market, it would
certainly affect performance. Similarly, exports of slippers and other plastic footwear would be affected by the c.e.t.
(iv) Electric bulbs
18. Mr. Haddon-Cave gave the following figures:-
1961
(Hong Kong dollars)
1966
United Kingdom 5.3m.
U.S.A.
United Kingdom
1.8 million
11.
U.S.A.
1.4 million
Total export 7.91.
France
.2 million
Rest of Six
Total export
5 million
The reason for the fall in United Kingdom inports was not known,
but sales in Japan had increased.
Because of technical
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/difficulties