GRPS
1748
PRIORITY
CYPHER/CAT A
2909222
FM HONG KONG 290922Z
CONFIDENTIAL NEUTRAL/
ITAL
3J-A
RECEIVED IN REGISTRY No.52
-1 APR 1974
HKK 6/508/1
TO PRIORITY F C O TELMO 386 OF 29TH MARCH, 1974. INFO PRIORITY UKREP DRUSSELS, BRUSSELS (FOR DODGE) AND HONGAID.
M.I.P.T.
MEMORANDUM.
LACT
RE
REXT
RES
37
HER MAJESTY'S GOVERNMENT IN THE UNITED KINGDOM HAS ALREADY
STATED IN THE COUNCIL OF MINISTERS OF THE EUROPEAN ECONOMIC COMMUNITY
ITS DETERMINATION TO PRESS RESOLUTELY FOR THE INCLUSION OF HONG KONGS
TEXTILES AND FOOTWEAR IN THE COMMUNITY'S GENERALISED SCHEME OF
PREFERENCES FROM 1975.
THE HONG KONG GOVERNMENT HOPES THAT IT WILL NOT BE THOUGHT
INAPPROPRIATE THAT IT SHOULD DRAW ATTENTION TO CERTAIN FACTS AND FIGURES, THE IMPLICATIONS OF WHICH MAY BE REVELANT TO CONSIDERATION OF HONG KONG'S STATUS, BOTH PRESENT AND FUTURE, IN RELATION TO THE
COMMUNITY'S SCHEME.
WHEN HONG KONG WAS INCLUDED IN THE SCHEME THAT WAS INTRODUCED
ON 1 JULY 1971, TEXTILES AND FOOTWEAR FROM HONG KONG WERE
SPECIFICALLY EXCLUDED FROM THE BENEFITS OF THE SCHEME.
SINCE THAT TIME THE HONG KONG FOOTWEAR INDUSTRY HAS DECLINED
SHARPLY AND EXPORTS OF HONG KONG TEXTILES TO THE EEC HAVE
FALLEN MARKEDLY.
A SURVEY OF THE HONG KONG FOOTWEAR INDUSTRY HAS RECENTLY BEEN
MADE. THIS SHOWS THAT THE INDUSTRY IS FRAGMENTED AND UNDER-
CAPITALISED AND THAT BOTH PRODUCTION AND EXPORTS HAVE DROPPED SHARPLY IN RECENT YEARS,
THE HONG KONG GOVERNMENT BELIEVES THAT THE CONDITION OF
THIS INDUSTRY DOES NOT WARRANT DISCRIMINATION, BUT RATHER THAT THE
HONG KONG FOOTWEAR INDUSTRY HAS ALL THE CHARACTERISTICS OF THE KIND
OF INDUSTRY WHICH THE GENERALISED SCHEMES OF PREFERENCE ARE GENERALLY
DESIGNED TO ASSIST,
AWHILE IT IS
CONFIDENTIAL
£