ENG-1956 — Page 107

INDUSTRY AND TRADE

77

The path of Hong Kong's thriving industry with its un- usual dependence on exports for its major market is not always a smooth one; success in particular overseas markets is apt to invite tariff or other restrictions on imports against which the Colony with its own liberal trade policy is in no position to retaliate, even if it wished to do so. During the year South Africa imposed anti-dumping measures against Hong Kong enamelware, but relaxed them when it was explained that dumping was impossible in the circumstances of Hong Kong. The success which Hong Kong manufac- tured rubber footwear has enjoyed in Western Germany caused its Government to place a discriminatory quota on imports from Hong Kong, but in response to representations the quota was fixed at a fairly high level. Representations have recently been made by the rubber footwear industry in Canada which may end in discriminatory action against Hong Kong. During the year France, which had previously per- mitted the import of Hong Kong manufactured flashlights and bulbs, placed an extremely small quota on the import of these articles. Negotiations to have the quota increased had not borne fruit by the end of the year.

In 1955 the first rumbling of a campaign against the un- restricted import of cotton yarn, grey cloth and shirts from Hong Kong into the United Kingdom were heard, and in 1956 certain trade interests in Lancashire launched a major publicity campaign for the imposition of restrictions against both Hong Kong and Indian products. The United Kingdom Government has refused to raise barriers against this trade.

In May Hong Kong displayed its products for the second time at the Washington State Trade Fair in Seattle and was the largest individual exhibitor. The range of products shown was wider, their quality much better than in 1954, and buyers from Canada and the west coast of the United States showed considerable interest in what was shown.

A comprehensive exhibit was also sent to the Frankfurt International Autumn Trade Fair, the Colony's first venture