TNAG-0939-FCO40-1158-Visit-of-John-Nott--Secretary-of-State-for-Trade--to-Hong-Ko-1981 — Page 70

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Britain (see paragraph 6). Some UK garment buyers are said to regard OPR as too troublesome but others had achieved worthwhile cost savings by using it. Basically, OPR provides for a reduction in import duty by the Member States on garments made outside of the EC but of materials produced in the EC. It does not affect quota levels but it should encourage garment buyers to specify British or other EC fabrics.

38 Another important aspect is active promotion in Hong Kong itself, where garment manufacturers are often free to choose the source of fabrics. Asked what the scope for expanding Britain's market share was, several firms felt unable to reply because of their admitted ignorance of UK textiles. In this regard agents should of course be fully supported by their principals. This means prompt replies to enquiries, preferably by telex, and regular visits to the market. As already pointed out, personal relationships are important in Hong Kong.

39 Support also includes the speedy provision of swatches and sample yardages, preferably by air, to go some way towards meeting the Japanese ability to deliver within 7-10 days. Despite some risk of copying, this would at least allow manufacturing firms to show UK textiles to customers undecided on materials to use.

40 These points are of course absurdly obvious but, judging from the comments of the local garment manufacturers and agents interviewed for this report, are not always being followed.

41 Clothing manufacturers also said that they had seen little of UK textiles at trade fairs and displays in Hong Kong or elsewhere. For this reason and partly because of our traditional success in the suitings field, their image of UK textiles was primarily that of winter fabrics, especially men's suitings.

42 Given the attendance by Hong Kong textile importers and foreign garment buyers at Insterstoff, Igedo and other such international exhibitions, British manufacturers of textile fabrics might take every opportunity to promote their products by this medium.

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In Hong Kong itself, the Japanese, Italians, French and Austrians are known to stage fabrics displays from time to time. No such display has been put on by the British, certainly not in recent years.

CONCLUSION

It is hoped that this report has served to highlight that while Hong Kong may be geographically small it is one of the world's biggest producers of a wide variety of clothing garments. It follows therefore that it is also a substantial market for textile fabrics, deserving closer examination by British suppliers. Such examination may reveal that British mills are unable to supply, or compete in, the types of fabrics used in Hong Kong's garment manufacturing industry. But it seems odd that, while the local industry has been moving 'up market', we are told that British suppliers continue to dismiss it as a non-priority market.

In the final analysis, the scope for British fabrics depends on the UK textile industry's willingness to accept that the Hong Kong market warrants closer attention, and the industry's capability to grasp whatever opportunities are identified by a proper study. We recommend that the industry should send a small representative mission to survey the market and decide whether it indeed merits greater attention by British exporters of fabric. The view of the British Trade Commission is that an opportunity is being missed. Since Hong Kong supplies about a quarter of the UK's imports of apparel etc (Appendix E), we should do more to ensure that most of them are made up from British fabric.

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