TNAG-0464-FCO40-529-Entitlement-of-Hong-Kong-to-EEC-Generalised-Scheme-of-Prefer-1974 — Page 157

FOOTWEAR MARKET, THERE HAS BEEN A MARKET DECLINE IN 1973.

THE EFFECT OF THE PREFERENCE DISCRIMINATION THERE IS STILL

NEW,

AND STILL PARTLY CUSHIONED BY THE PHASING-OUT OF

COMMONWEALTH PREFERENCE.

18. AS A RESULT OF THIS DAMAGE TO OUR FOOTWEAR

INDUSTRY, IT HAS ALSO NATURALLY BEGUN TO LOSE ITS MARKETS.

ELSEWHERE AND IS IN A STATE OF SIGNIFICANT DECLINE.

OVERALL EXPORTS IN 1973 WERE. 25% BELOW 1971. DURING THIS

SAME DISTRESSING PERIOD HOWEVER IT IS NOTED THAT EEC IMPORTS

OF FOOTWEAR,

WHILST DECLINING FROM HONG KONG,

暑

HAVE

INCREASED SUBSTANTIALLY FROM MANY OTHER OUTSIDE. SUPPLYING

COUNTRIES; I NOTE IN PARTICULAR FROM SPAIN, AUSTRIA,

SWITZERLAND, SWEDEN

DEN, PAKISTAN,

YUGOSLAVIA, GREECE,

MALAYSIA, SOUTH KOREA,

SINGAPORE. AND INDONESIA,

CZECHOSLOVAKIA,

HUNGARY, AND ROMANIA.

THERE MAY BE OTHERS.

ACCORDING TO

EEC IMPORT STATISTICS,

OF 1970.

1972 OVERALL IMPORTS WERE DOUBLE THOSE

WE SEEM TO BE THE ONLY LOSERS. WE ARE PARTICULARLY

WORRIED AT THE MARKED INCREASE FROM OUR. NEAR NEIGHBOUR AND

COMPETITOR: SOUTH KOREA,

TITOR:

WHICH SHOWED AN ALMOST TEN-FOLD

INCREASE IN 1972 COMPARED WITH 1970.

19. I THINK YOU MUST AGREE THAT THIS DIVERSION OF TRADE

FROM HONG KONG AND THE DAMAGE WHICH OUR FOOTWEAR INDUSTRY

:

/HAS CLEARLY SUFFERED

10.