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PRIORITY HONG KONG TO FOREIGN AND COMMONWEALTH OFFICE

HONG KONG TELEGRAM NO. 118 TO WASHINGTON

7 DECEMBER 1968

CONFIDENTIAL

NEUTRAL

ADDRESSED WASHINGTON (FOR HERMANN) TELEGRAM NO. 118 OF 7TH DECEMBER.

YOUR TELEGRAM NO. 90 : GLOVES.

THE CONSULATE GENERAL WAS ADVISED ON 30TH NOVEMBER THAT CONSULTATION LEVEL HAD BEEN REACHED. PRESENT POSITION IS THAT APPLICATIONS. IN EXCESS OF CONSULTATION LEVEL TOTAL 165,436 DOZEN PAIRS,

2. COULD YOU TRY TO IDENTIFY IF ONE SECTOR OF THE GLOVE TRADE IS MORE SENSITIVE THAN THE OTHER ? CATEGORY 39 COVERS ALL COTTON

GLOVES, BUT TRADE IS CLEARLY DIVIDED IN TWO BROAD RANGES, DRESS AND WORK GLOVES. IN HONG KONG AT LEAST THESE ARE PRODUCTS OF DIFFERENT INDUSTRIES. LOCAL DRESS GLOVE MAKERS CLAIM THERE IS NO COMPETING INDUSTRY IN THE U.S. AND THEY ARE BEING

PENALIZED BECAUSE OF SUDDEN UP SURGE IN DEMAND FOR WORK GLOVES.

THEY SUGGEST U.S. WORK GLOVE DEMAND HAS BEEN STIMULATED BY MILITARY REQUIREMENTS AND THAT U.S. WORK GLOVE INDUSTRY HAS SOME STRATEGIC SIGNIFICANCE HENCE OFFICIAL DESIRE TO PROTECT IT.

3. DRESS GLOVES, THEY CLAIM, ARE SOMETIMES CUT IN U.S. FROM IMPORTED FABRIC AND SENT FOR FINISHING TO PUERTO RICO, MEXICO OR PHILIPPINES. BUT THERE IS NO U.S. DRESS GLOVES INDUSTRY AS

SUCH.

4. THE DRESS GLOVES TRADE IS SUBJECT TO FASHION CHANGES, SMALL ORDERS AND URGENT DELIVERY DEMANDS. IN CONSEQUENCE THE LOCAL SUPPLIERS ARE NOT HEDGED AGAINST SHORT TERM DISLOCATION OF TRADE

AS ARE WORK GLOVE MAKERS WHO HAVE

WITH SIX MONTHS VALIDITY,

LAST

REF.

NEXT

BEF.

6

IN HAND EXPORT AUTHORIES HIVED

CONFIDENTIAL

15.

IN

ARCHIVES N。.3:

11 DEC 1968

HKKG/204/

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