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FM BTC HONG KONG TO PRIORITY DTI
TELNO OTTER 194
OF 03092OZ SEPTEMBER 90
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PA DTI visits
147672
MDLIAN 7522
332
15
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tharz 020/32
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FOR OT2/2
VISIT OF MINISTER FOR TRADE
MEANWHILE
1. WE PLAN TO PROPOSE A DRAFT PROGRAMME SHORTLY. GRATEFUL TO KNOW WHETHER THE MINISTER WOULD BE PREPARED TO OPEN A BRANCH OF MULBERRY, THE UK LUXURY LEATHER GOODS AND FASHION STORE, ON THE AFTERNOON OF MONDAY 24 SEPTEMBER. OT2/2 IS AWARE OF THE BACKGROUND E.G. MISS GRAY'S LETTER TO ME OF 17 AUGUST.
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2. THE STORE IS SMALL AND BOUTIQUE STYLE, WITH A FLOOR AREA OF 800 SQ FT. IT IS IN A GOOD LOCATION IN THE ENTRANCE TO A MAJOR SHOPPING COMPLEX, HARBOUR CITY CLOSE TO THE STAR FERRY ON KOWLOON SIDE. IT IS MULBERRY'S FIRST STORE IN HONG KONG. THEY ARE ALREADY PLANNING A SECOND. THE RETAIL TRADE IS OF INCREASING IMPORTANCE TO US. BURBERRY, ALFRED DUNHILL, GIEVES AND HAWKES, AND MARKS AND SPENCER AND OTHERS ALL DO WELL HERE BUT THE FRENCH AND ITALIANS TEND NEVERTHELESS TO DO BETTER. MULBERRY'S OPERATION HERE WILL BE RUN BY THE HONG KONG RETAILERS, SWANK SHOPS, IN A 50/50 JOINT VENTURE. THEY PROJECT SALES OF HKD 8 MILLION (POUNDS STERLING 0.6 MILLION) IN THE FIRST YEAR FOR THE MULBERRY SHOP. 80 PER CENT OF THE MERCHANDISE WILL BE UK SOURCED, AS WILL ALL THE SHOP'S FITTINGS AND FURNISHINGS. THE HEAD OF MULBERRY, UK, ROGER SAUL, WILL BE HERE FOR THE EVENT.
3. I RECOMMEND ACCEPTANCE, EVEN ALTHOUGH THIS IS A SMALL OUTLET. THE MINISTER PERFORMING THE OPENING CEREMONY WOULD PROVIDE A USEFUL BOOST FOR MULBERRY AND FOR BRITISH RETAILERS. IT WOULD REQUIRE SAYING A FEW WORDS BUT NOT A MAJOR SPEECH.
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