CO129-623-2 Rubber Industry- report and correspondence on the labour situation 1-12-1950 - 31-3-1951 — Page 25

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Action C.R.E.

Action C.R.E.

would be aware that action taken by the United Kingdom to restrict imports from Hong Kong in the present unsettled conditions in the Far East, might be very damaging to our interests.

4.

Action I.M.20 in consultation with I.M.1B and I.M.1C

Action I.M.1B

Action C.R.E.

5.

Action I.M.2C in consultation with I.M. 1A, I.M.1B and C.R.E.

After some discussion it was agreed

(a) that the Board of Trade would, in conjunction with

the Colonial Office, go further into the question whether the recent fall in imports of rubber footwear from Hong Kong was likely to be temporary, whether the rubber footwear factory which had recently closed down at Hong Kong was likely to be followed by others, and whether the present high price of rubber had made it more profitable, as had been suggested, for

Hong Kong manufacturers to sell their stocks rather than to continue in business.

(b) that the possibility of diverting these cheap low

quality exports from Hong Kong to other parts of the Commonwealth (c.g. India) should be examined.

(c) that the possibility of subjecting footwear sold in

this country to minimum standards (e.g. B.S.I. specifications) should be examined.

(a) that the Board of Trade would take up with H.M. Customs,

both the "off the record" allegation made by the doputation that H.M. Customs had waived for imports of rubber footwear from Hong Kong the necessity of producing evidence of qualification under the Imperial Preference Rules, and the fact that there was no official of H.M. Customs prosent in Hong Kong.

(c) that tho trade would call for a report on the

seasonal character or otherwise of the rubber footwear industry in Hong Kong from their local representative thero. The Board of Trade would instruct their Trade Commissioner to give all possible assistance in this onquiry.

After the deputation had left it was agreed

(a) that the possibility of an agreement between the

British Rubber Footwear Manufacturers and Distributors on the one hand and the Hong Kong manufacturers on the other (on the lines of the prewar trade-to-trade agreements with Japan) should be examined department- ally. The President considered that we might put the suggestion to the deputation in due course whilo, of course, making it clear to them that any such agreement would have to be on an unofficial basis.