G.F. 336

CONFIDENTIAL #5

5

2.

1

2.1

Direct effects of Mr. Tran's proposals

on Hong Kong's trade

Over the last five years, Hong Kong's exports

of the 7 sensitive items ranged between roughly (see

Footnote 3) 59% and 62% of exports of textiles and

clothing to the EEC, 20% and 24% of global exports of textiles and clothing, and 11% and 12% of total domestic

exports.

2.2

2.2.1

The cut-back in actual levels of trade

In 1976, the value of Hong Kong's exports of

the 7 items to the EEC was HK$3,345 million. Had

Mr. Tran's proposed quantitative limits been in force in

1976, assuming no change in the unit prices, the value

of Hong Kong's exports of the 7 items would have been-

held down to IIK$2,865 million (see Footnote 4).

/2.2.2

...

Footnote 3 :

As the Hong Kong trade statistics do not show knit underwear separately from

knit T-shirts, these percentages are slightly inflated.

Footnote 4: The figures in paragraph 2.2.1 include an estimate of the value of exports of

knit shirts and T-shirts derived from licensing records maintained since 1975 in respect of the current agreement with the EEC. They do not include exports of

knit underwear.

(CD&VIVED OFTAL VK HI

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