TNAG-0046-FCO40-82-Britain-s-entry-into-EEC-effect-on-trade-with-Hong-Kong-1967 — Page 67

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G.F. 323

CONFIDENTIAL

Leather footwear most of the output of this industry is

rubber soled footwear which is dependent on the United Kingdom. But other markets, comprise a large number of less-developed countries and Hong Kong itself where there may be scope for expansion.

Slide fasteners : this industry is heavily dependent on the United Kingdom and the other important outlet, sales to Hong Kong industry, is unlikely to be sufficient to allow it to survive.

Car-coats: being dependent to the extent of 77% of its

overseas sales on the United Kingdom, this industry is vulnerable.

The remaining industries are either not too dependent on the United Kingdom market (e.g. imitation jewellery) or not particularly reliant on the item which is dependent on the United Kingdom (e.g. the electric bulb industry; the woollen and cotton knitting industries; the raincoat industry) or can switch easily to other products altogether (e.g. the plastic footwear industry).

14. The weaving industry should be protected by the "Hong Kong woven" clause applied to quota for fabrics and garments for the United Kingdom and the cotton spinning industry by its close association with the weaving industry although there may be a tendency to replace Hong Kong yarn with yarn from elsewhere once the use of Commonwealth yarn is no longer necessary to obtain preference for fabrics.

15.

Members are invited to note this memorandum.

Commerce and Industry Department, 14th October, 1967.

CONFIDENTIAL