TNAG-0108-FCO40-144-Briefs-for-Members-of-Parliament-visiting-Hong-Kong-1969 — Page 24

NOTE FOR COMMONWEALTH PARLIAMENTARY ASSOCIATION

DELEGATION TO HONG KONG

OCTOBER, 1969

X2

3.

Hong Kong's Trade in Textiles with the United Kingdom

7

"

Despite the considerable progress towards diversification of Hong Kong's industry in recent years, textiles still represent a

In 1968 substantial proportion of its manufactures and exports. domestic exports were worth £577 million, of which £276 million was in textiles and garments. Twenty one per cent of Hong Kong's exports of textiles and garments went to the U.K. and this sector accounted for 62% of all Hong Kong exports to the U.K. market. 2. Commonwealth countries have duty free entry to the U.K. in cotton textiles, but (as in the case of foreign countries) such exports are restricted by quantitative restrictions.

Hong Kong's

exports of cotton textiles to the U.K. have been restricted since 1959 - originally in the form of voluntary undertakings to exercise restraints but since 1966 in the form of negotiated import quotas. On 22 July this year the President of the Board of Trade announced in Parliament that HMG had decided to adopt a Textile Council recommendation for the abolition of all import quotas on

cotton textiles with effect from 1 January, 1972, the UK industry

This will involve, thereafter relying on the tariff for protection.

in the case of imports from Commonwealth countries, the substitution of quotas by a tariff at 85% of the m.f.n. rate of duty at present applicable only to foreign imports (other than imports from EFTA countries and the Irish Republic).

senti to

G.C.3.

Bruge mul Mr Juggan,

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12.9.69. PA

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4.