An
II
Celticlas of the Kevork
(1)
In general, criticism has been that:-
1.
2.
3.
The report has too narrow a baslo to be authoritative for the cotton industry as a whole;
The cost calculations are not prociso enough;
The recommendations will not work because:
(a)
Froductivity in the industry will not increase onough;
(b)
“FTA suppliers will replace the Commonwealth (395)";
(c)
The general acvabent away
from cotton into other fibres.
Also, if Britain joins the 180, the total situation will change.
(2) From Hong Kong's point of view!
1.
2.
3.
The report is frankly protectionist the declared aim is to reduce less developed countries' imports from 40% to 25% of the market (630)* and "the tariff will have a significant effect la reducing imports from leas developed countries" (97)*.
The effect may be greater than intended, bechuset-
(a) No account is taken of any rise in real wages (Appendix XVIII);
(b) 15/ ia the bent (and not the
average) cost advantage of Commonwealth suppliers (396 & 631)*.
The recommendations bear particularly bard on Hong Kong beoausei-
(») The 15% Bariff protection is
ouloulated on Hong Kong coato (631)*;
(b) The report uses 'batter' sills (top 25%) for purposes of comparison but all Hong Kong mille must compete for exporte (120)*Į