come to
Korea.
HOTEL Land of the
A Flagship
★Hotel
A subsidiary of American Airlines
morning calm.
dicated their readiness to do so lead.
pro
} the EEC gives the
The question of beneficiary countries should be settled this spring. If the Six decide to include Hongkong, the prob- lem the colony poses for the negotiators in Brussels will be considered solved, although in that case the problem of bringing the UK's preferential scheme into line with that of the EEC will become more urgent than ever. (As the British scheme does not provide for ceilings, the Six are certain to claim that it will give rise to an influx of goods from Hong. kong, via the UK).
What would be the benefits to Hongkong? It must be remembered that Britain's entry will mean the introduction of the common external tariff and the elimination of com- monwealth preferences, probably over a five-year period. The EEC: Imports from Hongkong, 1967-69
(US$ million)
Germany
France
Netherlands
Belgium/Luxembourg
Total
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7 ..
}.
..
Italy
10
1969
1968
1967
147
99
78
11
7
6
12
9
9
28
20
19
27
19
19
225
154
131
Source: Statistical office, European Communities.
EEC: Selected Imports from Hongkong, 1967-69
THE CHOSUN HOTEL, SEOUL, KOREA
We provide the rest.
- - - - - - - - :1:13] 7
(US$ thousand)
"..
Clothing Toys
1969
113,891 | 15,682
1968
75,801
1967
65,894
11,617 {
9,996
Shoes
11,455
9,194
6,666
Wigs
}
10,746
4,676
2,608
Radios
Umbrellas
6,054 1
4,389
1,801
3,274
1,749
1,146
Plastic articles
2,078
1,191
749
Travel articles
2,559
1,745
1,294
Source: Statistical office, European Communities.
steady rise in Hongkong's exports to the EEC suggests it can compete successfully despite the common external tariff. But as an exporter of manufactured products the colony would find its competitive position undermined by two develop- ments: the creation of a system of generalised preferences and the elimination of tariffs between the UK and the other members of the EEC.
Hongkong circles here take the view that the colony should be included among the beneficiary countries if only
to prevent it being discriminated against. However, the bene- fits to Hongkong would depend on the terms on which it is included. The exclusion of shoes and textiles need not be damaging, for these are products for which the colony is more competitive than most developing countries. Moreover, it has just concluded a textile agreement with the Six under which its exports of products covered by the longterm ar- rangement have been fixed at 15,490 tons.
Much would depend on how the Six define "sensitive" products and where they put the cut-off point for imports from any one country. For items such as wigs, umbrellas, dry batteries, dolls of all kinds, artificial flowers and light bulbs it would certainly be low enough to make the rapid rise of recent years difficult if not impossible. Here again, however, Hongkong will probably be able to compete successfully against developing countries and could therefore maintain exports at their present level (as there are no limits on im- ports which pay the full tariff). On the other hand, for many products it would face stronger competition in the UK mar- ket from EEC countries, which would have duty free entry.
-JANUARY-2) 971štvo Jeden je da kaLO MODUL FAR EASTERN ECONOMIC-REVIEW: HONGKONG THE EXPORTER