TNAG-0166-FCO40-202-Exports-to-Benelux-countries-1969 — Page 7

Reference.........

In Milne frror

Benelux Non-cottons

We have now had an opportunity of taking a quick look at the trade figures in the light of the Benelux request to Hong Kong to discuss restraints on imports of m.m.f. trousers, coats and raincoats.

Trousers

2. There has been a very steep rise in imports of trousers - the figures for the first seven months of this year are nearly as high as in the whole of 1968 and higher than in the whole of 1967- but the Hong Kong share of the total (about one-sixth) was virtually unchanged. There has been a swing from cotton to wool and m.m.f and the Hong Kong share of the .m.f. market has increased this year, but is still less than one-sixth of the total.

• 2

3. We have not seen any figures for production, but the attached cutting from a recent issue of the Daily News Record suggests that demand in Belgium is well in excess of the supply.

4. On the face of it, the Benelux case for restrictions on imports of trousers from Hong Kong is a great deal weaker than the U.K. case.

Coats and Raincoats

15.

We have not been able to identify raincoats, nor anoraks as a separate item. Benelux imports of coats etc. from Hong Kong are shown to be negligible, though here again imports from all sources have risen very rapidly this year. Hong Kong exports show a different pattern the figure for the first seven months of the year being well in excess of the figure for the whole of last year. The total amounts to about one garment per head of the population at least every 25 years. This seems an unfortunate moment to launch a case as weak as this. Unfortunately, the Belgians have

always been very protectionist in the textile field and it may not be too easy to persuade them to drop the matter. On the other hand, the imposition of restraint in this case would undoubtedly have far- reaching consequences, as the Hong Kong Government no doubt realises.

J

S. STEWART,

CT Division,

1st December, 1969.-

R. DAL DUNNETT (CR1, B.O.T.),

c.c. Mr Carey (CT Div), MinTech.

Mr Jupp 17

11

Mr Whitehead (FCO),

##

Mr Sellers (Hong Kong Govt.Office)

Mr Toms

(CR2, B.O.T.),

Mr Abbott (UKMIS, Geneva).

Miss Welch (CTD).

RECEIVED IN

REGISTRY No.51

- ADEC 1969