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lty of "dumping".
The French operate discriminatory trade quotas
against Hong Kong which are contrary to the GATT. Other countries
such as Nigeria, the Sudan and Iraq, have severely cut back imports
from Hong Kong or prohibited them altogether on the grounds of
imbalance of trade. Protests in such cases have been of little use.
Preferences for Developing Countries
21.
At the second session of UNCTAD in 1968, agreement was reached
between the developed and developing countries to recommend the
introduction as soon as possible of a generalised system of prefer-
ences in favour of developing countries. The developed countries
went to work on defining the areas in which they were ready to give
preferences and there is to be consultation about these in the UNCTAD
Special Committee on Preferences. The developed countries are at
present discussing their provisional offers in OECD.
22. The position of Hong Kong will be difficult. To benefit Hong
Kong must be accepted as a developing country, but competitive as she
increasingly is, she fears that her developing status may be
challenged. There are indications for example that EEC might decide
to exclude Hong Kong altogether as a beneficiary from its scheme.
Other donor countries may attempt to discriminate against her.
Trade with Britain*
23.
Hong Kong trade with the United Kingdom shows a considerable
imblanace in Hong Kong's favour. The British market, which took
approximately 14% of Hong Kong's domestic exports in 1969, is important
to the Colony not only because of its size but also because of the
benefits of Commonwealth preferences.
These provide Hong Kong
industry with the opportunity to try out new products in a "domestic
market" which is lacking in Hong Kong.
* Trade figures in this section are taken from Hong Kong (not U.K.) trade statistics.
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