TNAG-0465-FCO40-530-Entitlement-of-Hong-Kong-to-EEC-Generalised-Scheme-of-Prefer-1974 — Page 12

-3.

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Yet, according to another source of information, the

Federation of European Footwear Manufacturers recently requested the

EEC Commission to adopt restrictive measures regarding the import of

footwear, one of which was to discontinue preferential treatment for

developing countries.

Footwear exporters therefore think that if the EEC grants

the request of the Federation of European Footwear Manufacturers, HK

will find that she has been rejoicing over nothing at all. By the

time HK gets the preferential treatment, the GSP may have been totally

cancelled by the EEC. Nevertheless, people in general think the EEC

Commission will not adopt any restrictive measures.

It is said the Federation of European Footwear Manufacturers

requested that the import of footwear be controlled because of the

increasing number of low-price shoes from the developing countries and

the difficulty they encountered in the purchase of leather.

According to statistics, only 80 million pairs of shoes, of

US$246 million's worth, were imported into the EEC in February 1972

while 165 million pairs, of US$667 million's worth, were exported in

the same month, showing a big excess of exports. However, imports have

increased while exports have decreased since the beginning of this year.

Low-price shoes are exported to EEC regions in large quantities, es-

pecially from Taiwan, Korea, HK, Yugoslavia, Brazil, India, Rumania and

Poland. On the other hand, South American countries impose restrictions

on the sale of leather abroad and this further increases the difficulties

of the shoe manufacturing trade in Europe.