PA
36
T
DAILY REVIEW OF BUSINESS TOPICS AS REPORTED IN THE CHINESE PRESS
Translated by the redminereestand
XAHIY
HKK 21)).
INDE
QUOTA PROFITEERING ACTIVE +
* 3 MAR 1978
ISTRY
con Taken
No RS Binky
People in textiles trade pointed out that quota speculation has
become active recently, and quota premia for certain hot textiles to Europe
have been pushed up, reported the Hong Kong Economic Journal ( 25/2 )
Some profiteering manufacturers, taking advantage of their long standing
and large amount of quotas in hand, demand buyers to pay for the extra
charge for quotas which costs several tens of dollars per dozen. Besides,
those who have not been engaged in quota selling, in view of the great profit
of the business, also involved themselves in the trade. Recently, some buyers
from Europe who have passed Hongkong, expressed dissatisfaction over this
development. They indicated that they would encourage their govts to withdraw
the control of export quotas from Hong Kong.
Sources closed to the Govt. said, " As European countries have made big
slashes on HK quotas, avaliable free quotas represent a very small amount
save for several particular textile items. Newcomers to textile industry
have to purchase quotas at high cost as quotas for the European markets
greatly fall short. At present, in respect of the U.S. market, quotas are
abundant and no profiteering activity is reported. However, it is believed
quota shortage in respect of all markets concerned will become serious in
the next few months.
Issue number ;.19/2
Date: 27/2/78