TNAG-0046-FCO40-82-Britain-s-entry-into-EEC-effect-on-trade-with-Hong-Kong-1967 — Page 216

CONFIDENTIAL

Trade in Textiles

6. As a preliminary to examination of the problems of trade

in cotton textiles, Mr. Haddon-Cave underlined the heavy

dependence of the Territory's economy on all its textile

exports. These were valued at £185-£190m. in 1966 or 52% of

total exports. Yarns and fabrics exports totalled £48m. or

13% of all exports. £41m. worth of textiles or 22% of all tex-

tile exports went to the U.K. in 1966. £12m. of this were

G

yarns and fabrics about 25% of all Hong Kong exports of these

items. The U.K.'s percentage share of Hong Kong's textile

exports was therefore higher than her percentage share of all

Hong Kong's exports put together.

7。 The E.E.C. took £28m. worth of textiles from Hong Kong in

1966 or 15% of her total textile exports. This percentage was

rising as Hong Kong gradually expanded trade with these

countries, whereas the U.K.'s share of Hong Kong's textile

exports was declining, because quota restrictions were not

allowing these to grow. Indeed textiles made up a higher per-

centage of Hong Kong's exports to the Six (71%) than to the

U.K. (66%). This was largely because of West Germany's

relatively liberal import policy on textiles; last year 78%

of Hong Kong's textile exports to the E.E.C. went to Germany.

Trade in cotton textiles

8. A better indication of Hong Kong's potential as an

exporting country was to be derived from details of access

rights to the markets of the Six, given the proliferation of

import restraints on this trade. Growth provisions could be

ignored since these were small in relation to the size of the

trade.

9. Hong Kong was limited by quota to sending 187.3m. square

yards of cotton piece-goods and madeups and 6.3m. lbs. of yarn

to the U.K. in any year. Negotiated Access rights to the

German market totalled 66m. square yards of restrained products

and an additional 33m. yards of unrestricted trade.

The bulk

CONFIDENTIAL

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