TNAG-0938-FCO40-1157-Visit-of-John-Nott--Secretary-of-State-for-Trade--to-Hong-Ko-1980 — Page 96

2.2.

The current external sources of HK yarn and fabrics are:

£mn 1979

1

2.3.

2.4.

China

Japan

Taiwan

USA

UK

W.Germany

Switzerland

289

267

222

28

I I

20

16

14

Rest (inc S. Korea)

254

1110

Total

26.0

24.0

20.0

2.5

1.8

1.4

1.3

23.0

100.0

(Source: Sunday Times, Article: 8th August, 1980)

The majority of U.K. cloth imported into Hong Kong is of high quality, destined for use in the domestic market rather than for re-export. (£7.8m was wool/worsted cloths).

The recent JTC study of import penetration provides data for 1979 shipments into the UK from HK in terms of EEC categories by tonnes and units. This tonnage gives a reasonable indication of fabric and fibre used and is shown in tabulated for as

This indicates that, by weight, HK exported in 1979 some 38,000 tonnes of clothing to the UK across 34 of the 128 EEC trade categories. Of these, 80% was concentrated in eight categories 4.5.6.7.8.18.21 and 76. The most significant category of all was category 6 (Trousers and denims) which alone accounted for 35% of all garment exports in terms of weight.

Of these eight categories, two relate to garments which are knitted directly from yarn (4 and 5).

The bulk of the business in the remaining six categories is done in a narrow range of basic fabrics, many of which are traded on a commodity basis.

The major yarns and fabrics used by the Littlewoods Organisation in its imports from HK are tabulated at

We would point out, however, that the price differences quoted are not necessarily comparable. Measurements, both of width and length are in most cases different. The prices quoted are subject to significant fluctuation, due both to currency swings and to local demand and supply situations. Nor is there any provision in the UK prices for cost of shipment to H.K.

One significant advantage which UK cloths might have over its competitors is that drawback can be claimed on the fabric used in garments which are subsequently re-imported. The procedure for obtaining this drawback on shipments of garments from Korea is detailed in

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