TNAG-0172-FCO40-208-United-Kingdom-Productivity-and-Efficiency-Study-effect-on-H-1969 — Page 193

III

3-

(c) Hong Kong has never renegod on

ite Commonwealth preference obligations to Britain, allows British toxtiles unlimited duty free entry (and is a Colony without autonomy in its trading relationa); the report is therefore unacceptable when it says "other Commonwealth countries impose tariffe on textile laports from the United Kingdom and this country is under no moral obligetion to give free entry to thea" (636)*.

United Kingdom's moral obligation to Hong Kong is obvious.

Effects on Ibuɛ Kong if the

Report 18 karlemented.

(1) The presont Hong Kong export situation in textiles

10 as follows:-

(a) C2 worldwide cotton exports by volume,

Hong Kong sent to the U.K. in 19681-

25.9% YarnLS

22.8% Joven Cloth

69.62 Made-Ups

worth 2273 million

These represented roughly 20% of U.k. import market in these itsas.

By Yalue, 19% of all garments (60% of U.K. import market),

(b) Only nome 7% of Hong Kong's textile

exports were of a.s.f. Only Joue 17% of Hong Kong's Textile exports

of wool.

The likely effecta ure 1-

(2)

1.

The tariff is likely to reduce yarn and woven cloth exporta baqause:-

(a) Hong Kong does not sell much to

dernany ovar a 15 tariff – only 2.3% of grayeloth importa aa opposed to 16.12 from Tugoslavia:

(D) EFTA suppliers (especially

Portugal) if unrestražnod, would take over Hong Kong's market;

(c) The Textile Council clearly

expect this to be the effect (although the 15% surcharge in 1964 did not reduce exports of these items)