INDUSTRY AND TRADE
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the three-year period. The U.S. industry had not reacted by the end of the year.
Thus the path of Hong Kong's thriving industry is anything but smooth. The policies of the Common Market countries have been carefully watched; and the formation after negotiations in Stockholm of the European Free Trade Association may adversely affect Hong Kong's exports to members of the Association.
The Australian Tariff Board, at the instigation of Australian footwear manufacturing companies, investigated the alleged threat to their local industry of increasing imports of casual rubber foot- wear from, in particular, Hong Kong and Japan. In the meantime a non-discriminatory quantitative restriction was imposed which had the effect of reducing exports from Hong Kong substantially below the previously current level. The Hong Kong General Chamber of Commerce assisted by the Commerce and Industry Department submitted representations on behalf of the local industry and the outcome of the Tariff Board's deliberations is awaited.
The Benelux countries have been tightening control on the importation of Hong Kong manufactured gloves; those made of wool, partly of wool, or partly of synthetic fibres have been sub- jected to quota restrictions following a period during which import licences were temporarily suspended. Representations have been made.
Import duties on enamelware imported into Kenya and Uganda were amended by the addition of an alternative specific duty which represents an increase in the effective ad valorem rate from 30% to as much as 385% in some cases. This change, which was designed to provide protection to local industries, has brought exports to these countries to a virtual standstill.
In November 1958 the liberalized regime for certain textile goods imported into French West Africa which had applied since 1951 to imports from all O.E.E.C. territories, was withdrawn by the French Government in respect of imports from Hong Kong only, and a quota for these goods unilaterally determined at less than half the current level was established in its place. Some of the quotas opened by French West Africa for imports from O.E.E.C. countries of non-liberalized textile items excluded Hong Kong as a source. During the year Metropolitan France liberalized