000 1.130
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CONFIDENTIAL
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Towels (other than dish towels), cotton
not embroidered (656 919)
In 1961, the principal markets for this item were
U.K.
314.0 million
Malaya
New Zealand
$1.4 million
$1.3 million
out of total exports of $25.8 million. principal markets were
In 1966, however, the
Value
Tariff
U.K.
$37.1 million
nil
U.S.A.
$10.4 million
W. Germany
04.0 million
Netherlands
$2.2 million
14% - 20% a.v.
17.6% a.v.
22% a.v.
New Zealand
$2.0 million
25% a.v.
out of total exports of $68.7 million.
On
Some progress has been made in surmounting high tariffs in a number of developed markets, particularly the U.S.A. the other hand exports of this item to the U.S.A. and W. Germany
The are subject to quotas considerably lower than the U.K. one. item therefore still depends heavily on the U.K. market and the U.K.'s application of the C.E.T. of 22% would probably depress export performance to some extent. But exporters have pointed out that the industry is moving into the high quality range and has reasonably good prospects for expanding sales generally.
Pillowcases, cotton, not embroidered (656 923)
This item was not separately classified in 1961.
In 1966, the principal markets were
-
U.K.
U.S.A.
W.
Germany
Value
Tariff
$2.1 million
nil
31.1 million
12.5% a.v.
$315 thousand
17.6% a.v.
out of total exports of $4.2 million.
The industry considers that the adoption of the C.E.T. for this item, 22% 8.v. (14% after the Kennedy Round cuts), by the U.K. could have a serious effect on Hong Kong's export performance particularly as competition from China, Taiwan, Japan and Portugal is keen. In addition, exports of unembroidered pillowcases to the U.S.A., the second largest market, are subject to a quota equivalent to 0.8 million sq. yds. for the year 1966/67, compared with the 1967 U.K. quota of 6.5 million sq. yds. for all bed linen.
CONFIDENTIAL
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