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free quotas.
In these circumstances, it would be understandable if the
Community, while being willing to consider the case for including Hong Kong
in its scheme for other proucts which are included in the United States'
offer, were to decide to exclude Hong Kong from preferential benefit on
textiles (and perhaps also footwear). It is recognise that almost a half
of Hong Kong's total domestic exports still consist of textiles and clothing
and that she retains a strong position in this sector due to the quality of
her products.
17. If this were to be done, however, the situation would need to be
watched to ensure that Hong Kong's closest competitors did not benefit
unduly from the discrimination that would then be practise in their favour
and at Hong Kong's expense. In particular, exports of textiles and garments frm Taiwan and South Korea are now increasing at a rapid rate and at prices
significantly lower than Hʊng Kong's.
Hong Kong Office,
U.K. Missi ›n,
Geneva.
30 Octuber 1970.
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OF AG