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HK worry on textile preferences
BY PHILIP BOWRING
HONG KONG, Nov. 21.
THE RELEASE is expected now being phased out, was of thanks largely to demand from to the U.K.--all the woven and within the next two days of the limited beneât.
an unprotectionis. Germany.
under If polyester cottons-enter British Government's reply to a Hong Kong's free trade posi- this continues, Hong Kong's bar- quota agreements. Hong Kong petition, sent in 'August, from tion, then, is to request not so gaining position on GPS will be holds an aggregate quota of over Hong Kong textile interests, much developing country weakened. But there are serious 270m. square yards of these Lequesting urgent action to privileges in regard to textiles worries here that with Hong items in the British market. secure inclusion of the colony's but to avoid being disadvantaged Kong's relative, but not absolute, The effect of this is to restrict textiles and footwear in the in relation to its mainly Asian competitiveness declining in the hopeful new entrants to the EEC's Generalised Preference competitors, such as Korea.
face of Korean and other Asian market, whether they enjoy Scheme. The U.K.. due to Though the EEC has never competition, GPS discrimination tariff preference or not. enter the EEC scheme on January officially stated its reason
for could have serious long-term Colombia and Thailand, for 1, 1974.
opposition to Hong Kong's entry effects. Already the much instance, were recently placed The reply will doubtless con- to the GPS for textiles and foot smaller, and also much less under restraint in their textile tain plenty of soothing words, but wear, the main reason would efficient, Hong Kong footwear exports to Britain.
оn
it is likely to highlight once again appear to be that this would industry is suffering from GPS Finally, the GSP preferences the feeling in the colony that its upset the basis for calculating discrimination against it by Japan which will become available to interests take a very minor place (PS-the level of imports from and other countries. The Hong Kong's competitors in British bargaining in Brussels. the countries concerned in 1968. industry is now in its second suc- other items, notably shoes and Though on November 6, Mr. The entry of Hong Kong would cessive year of decline in exports. knitted garments, will be on the John Davies, Chancellor of the either demand an increase in Duchy of Lancaster, stated that it GPS quotas, or a change in the was no longer acceptable for base system. Hong Kong to be discriminated here whether the EEC has con-
It is not known U.K. view
basis of duty-free tariff quotas.
When these ceilings for 1374 are announced they may prove
against, Britain has apparently sidered a change in the base Dick Wilson adds: British less generous to the developing
ON HER MAJESTY'S SERVICE
HONG KONG DEPT,.
ROOM NO. 245,
KING CHARLES ST.
PRESS CUTTINGS.
Code 7.29.
more recent
low Hong Kong officials argue that Britain did countries than Hong Kong fears. ithout raising the its duty to Hong Kong in 1971 by The base-year on which quotas GPS imports-in insisting against bitter opposition are calculated is likely to be
S0 that which from the EEC Six on the colony's 1968, ¡ple step Idd one more pro-
inclusion in principle in the Com- advances by Hong Kong's conì- nks of those com-
munity's GSP scheme. The ex- petitors could not be consoli- GPS free-for-all. clusion of textiles and footwear dated. implicating factor, was the only condition on which
Hong Kong shoe exports to the negotiations, this was acceptable to the Six, Britain are in any case falling 3 intermittently in and now Britain itself must also for other reasons-by 12 per
Gatt auspices, of abide by it. le agreement to Meanwhile, British traders The British Government in n-year-old existing point out that there are three this matter is treading a careful overs only cotton reasons why the subjection of path between its obligations to these Hong Kong products to the U.K. industry, to Hong Kong,
cent. so far this year.
to be seen whether duty may not be as deadly as to its EE partners and to the
their counterparts in the colony developing countries. agree a common uture quota levels fear.
British imports of Hong Kong ot sacrifice develop- For one thing. Taiwan, which yarn, fabrics and made ups ports to the protec- is probably Hong Kong's keenest exceeded £22m. in the first thie the French in competitor, is also excluded, quarters of this year. The For the moment at from EEC preferences.
clothing and footwear figures
Cong textile exports For another, a good half of were £87m. and £8m. respec- 3 are flourishing, Hong Kong's textile shipments tively.
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