TNAG-0044-FCO40-80-Exports-to-the-Benelux-countries-aide-memoires-1967 — Page 149

0003230

#

G.F. 323

CONFIDENTIAL

Second Session : 10.30 a.m. Friday, 14th July, 1967

or

18.

Mr. Miller stated that the department had examined Hong Kong export declarations for umbrellas for the period January April 1967 from which it appeared that exports to the Benelux of children's umbrellas came to 14,196 dozen, roughly 10% of the total. The unit price for adult's umbrellas was HK$3.44 whilst that for children's umbrellas was HK$1.45. The department had also examined the possibility of children's or toy umbrellas having been included under the Hong Kong Trade Classification No. 894-237, Toys, n.e.s. A number of export declarations for toy umbrellas had been found under this heading but it was not possible to determine the total trade involved. The unit price here, however, was about $1.44 which was almost the same as the unit price for children's umbrellas in the classification category No. 899-410 for umbrellas.

19.

Mr. Miller continued that a quick survey had been made of 35 out of the 47 umbrella factories registered with the department. Of these, 16 exported to the Benelux at unit prices ranging from $35 to $100 per dozen. Some of the factories had also indicated that they were aware of some trade in Chinese umbrellas, although this re-export trade was not recorded in the Hong Kong Trade statistics.

20.

He regretted that it had not been possible in the limited time available to complete the enquiries necessary for any formal consideration of the Benelux case or for consultation with the Trade and Industry Advisory Board. He could assure the Benelux side, however, that the investigations would be continued, especially those relating to the composition and origin of the trade.

21.

In the meantime he felt bound to observe that the Benelux domestic production had not declined, their unit price had been raised and consumption was still increasing. While it was true that imports from Hong Kong had increased, this increase was not as large as that in domestic production and was only one third of that in total imports. On the face of it, therefore, he thought it would be difficult for the Hong Kong Government to accept that its exports were disrupting the Benelux market.

22.

Mr. Verhagen recapitulated Hong Kong's main argument, which was that the Benelux side had been unable to establish that the domestic production and the price structure of umbrellas were being disrupted by imports from Hong Kong. He pointed out, however, that it was always difficult to establish that market disruption was taking place. Nevertheless, it was a fact that domestic production was stagnating, whilst consumption was rising rather sharply. The only conclusion one could draw from this, he said, was that the increase in consumption was being satisfied by imports. A large part of these imports were at prices below those that normally prevailed on the Benelux market. The price of imports from Hong Kong had been confirmed by the figures they had just been given.

CONFIDENTIAL

/23.