1
COMP
TAL
7. Returning to the main part of the discussion, Mr Haddon-Cave presented a short analysis of Hong Kong's performance against categories in an attempt to prove how many of them were outmoded. The UK's proposed abolition of the specific limit on handkerchiefs would hardly be greeted with enthusiasm in Hong Kong, because it was so small (105,101 sq. yds. in 1971). Similarly, although the UK had offered to roll in the Group V limit with Group IV, we had effectively demanded the introduction of a further specific category by limiting exports of fabric gloves to a ceiling of 2.5m sq. yds.
CATEGORIES IN WHICH HONG KONG'S EXPORT PERFORMANCE WAS CONSISTENTLY BELOW 75%-80%
1966 1967 1968 1969 1970
1971
Cat 3
Yarn-dyed
(including
denim)
39
48
41
67
under 60"
Cat 5
Poplins
(including
48
49
57
29.5
31
47
yarn-dyed)
Cat 11
Poplins
(including
43
38
31
26
10
23
yarn-dyed)
Cat 14
Bedlinen
of which
74
71
46
42
59
61
sheets
Cat 15
Handkerchiefs
3
0
0
0
4
0
Cat 17
Trousers
41
33
41
68
38
70
Cat 18
Shirts
74
62
57
45
39
45
Cat 20
Raincoats
69
81
95
69
32
41
8.
This table of performance proved conclusively from Hong Kong's point of view that there was a great deal of scope for decategorisation of the weak items. Alternatively if HMG could not agree to re-shaping the category system from scratch, then progress could be made by cutting out some of the less profitable items and moving the equivalent yardage into the "basket" category.
Mr Ridley agreed that there was a certain element of under-usage in certain categories, but for that very reason HMG had proposed the merger of the three categories 16, 17 and 20. In raincoats for example, 1971 quota limit was 10m. sq. yds. and performance was a little over 4m sq. yds. Our view was that the merger gave greater flexibility to Hong Kong and a potential increase of some 60%.
?
MENTAL
However,
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