TNAG-0464-FCO40-529-Entitlement-of-Hong-Kong-to-EEC-Generalised-Scheme-of-Prefer-1974 — Page 206

4

According to information received, the specific exclusion of

Hong Kong had not been intended by the Austrian Government but

had been introduced by parliamentary amendment to the Bill to

align with the Swiss (and possibly the EEC) GSP.

12.

Enclosure 3 shows that between 1970 and 1972 Hong

Kong exports of footwear to Austria had shown increases.

However in 1973 the full year of GSP, there was a sharp drop

of 34.9% by value and 40.2% by quantity.

Japanese GSP

13.

!

Japan introduced Phase I of its GSP on 1 August 1971.

Phase II of the scheme was introduced on 1 April 1972. One of

the features of the scheme is that rubber and plastic footwear

are totally excluded from preferential treatment.

14.

Hong Kong was included as a beneficiary in the Japanese

scheme on 1 April 1972 but an exclusion list comprising ninety-six

items applying only to Hong Kong was established at the same time.

The ninety-six items included two items on leather footwear

(BTN Nos. 6402A and 6402B). Since then Hong Kong's exclusion

list was modified twice, first on June 1973 when the items were

reduced to twelve and to seven on 1 April 1974. Footwear with

leather uppers (ex 6402A) is one of the seven items remaining in

the exclusion list.

15.

Enclosure 4 shows Hong Kong exports of footwear under

6402A and 6402B to Japan. Hong Kong exports have shown increases

in 1972 and 1973 but the amounts are still relatively insignificant.

10th July 1974