CONFIDENTIAL
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HONG KONG TEL.NO. 762 TO F.C.0.
REQUIRE A SAFEGUARD AGAINST DAMAGE FROM THE DUTY-FREE EXPORTS
OF OTHER COUNTRIES.
7. BASED ON U.S. IMPORT STATISTICS FOR 1969 (FT135), THESE
PRODUCTS WOULD AT PRESENT BE:
CLASSIFICATION NO.
DESCRIPTION
VALUE
(U.S. MILLION)
SHARE OF
IMPORTS
PERCENT
897 2034
WATCH BRACELETS
2.8
94.4
899 9320
PLASTIC FLOWERS
2.8
77.2
894 2645
TOYS
19.8
71.3
831 0035
BEADED HANDBAGS
4.28
69.3
821 0858
FURNITURE (RATTAN)
3.7
62.3
893 1070
RELIGIOUS ARTICLES
9.4
59.5
831 8055
HANDBAGS
17.8
57.6
897 2325
JEWELLERY ETC
2.7
56.0
TOTAL VALUE
63.08
8.
THESE PRODUCTS REPRESENT 8 PERCENT OF U.S. IMPORTS FROM HONG KONG. WE ARE, HOWEVER, DUBIOUS ABOUT SOME OF THESE STATISTICS BECAUSE OF DISCREPANCIES WITH CUR OWN EXPORT STATISTICS:
FOR INSTANCE OUR STATISTICS SHOW THAT HONG KONG'S UNDERLINE NEXT WORD EXPORTS OF PLASTIC FLOWERS TO THE U.S. IN 1969 AMOUNTED TO APPROX. U.S. DOLLARS 51.8 MILLION. THIS ALONE WOULD INCREASE
THE TOTAL VALUE OF THE 8 ITEMS LISTED ABOVE TO U.S. DOLLARS 112.08 MILLION. REPRESENTING SOME 14 PERCENT OF U.S. IMPORTS FROM HONG KONG. IF THE EXCLUDED PRODUCTS, TEXTILES AND FOOTWEAR, WHICH REPRESENT 36 PERCENT OF U.S. IMPORTS FROM HONG KONG ARE ADDED, THE EFFECT WOULD BE THAT ONLY ABOUT 50 PERCENT OF U.S. IMPORTS FROM HONG KONG WOULD ENJOY UNLIMITED PREFERENTIAL
TREATMENT.
9. IF IT IS NECESSARY FOR US TO MAKE A CONCESSION EVENTUALLY * THEN WE COULD LIVE WITH SOMETHING ALONG THESE LINES. ALTHOUGH
SUCH A SYSTEM WOULD NOT BE EASY TO ADMINISTER, BOTH E E C AND JAPAN ARE PROPOSING SOME KIND OF DUTY-FREE QUOTA ARRANGEMENTS AND
THE DIFFICULTIES ARE THEREFORE NOT INSURMOUNTABLE.
CONFIDENTIAL
/10. WE HAVE