TNAG-0345-FCO40-381-UK-and-Hong-Kong-talks-on-cotton-textiles-1972 — Page 171

THE RELEVANCE OF COTTON QUOTAS TO HONG KONG'S

TRADE WITH UK IN CLOTHING

The following statistics for 1969 and 1970 are relevant:-

1969

1970 (£ million)

All clothing*

imports from

44.9

44.2

"

Hong hong

of which

woven cotton

separately

specified

19.1

15.4

2. It follows that, on the value figures to 1970, the quota restrictions affect just over one third of Hong Kong's trade, the balance being completely unrestrained.

3. Statistics so far available for the first ten months of 1971 show the following:-

First 10 months

1970

All clothing*

imports from

35.6

Hong Kong

of which

woven cotton

Separately

specified

12.4

4.

These statistics show that: -

First 10 months (£ million

1971

54.4

17.2

5.

(a) our clothing imports from Hong Kong have been rising very

fast;

(b) although the decline in woven cottons has been halted and

reversed somewhat, the great growth is in non woven cottons (in fact, mainly in non cottons);

(c) the quota restrictions on the value figures to end October

1971 again affect fist under of Hong Kong's trade

and indeed do not affect the area where the greatest growth is showing.

It is for discussion therefore to what extent the quota restrictions are meaningful as a limitation of Hong Kong clothing exports generally, although they may have an effect on individual suppliers who have not advanced beyond woven cottons.

These figures exclude gloves, hats, fur, leather, plastic and speciality clothing eg ties.