ENG-1957 — Page 116

94

HONG KONG ANNUAL REPORT

The success which Hong Kong manufactured rubber footwear has enjoyed in Western Germany engendered a discriminatory quota on imports from the Colony, but in response to representations the quota was fixed at a fairly high level in 1956. Further representations were made in 1957, as a result of which a more liberal quota was agreed

upon.

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Since the end of 1956 the Canadian Tariff Board had been studying whether the volume of waterproof and rubber footwear imported into Canada was liable to cause or threaten serious injury to Canadian - producers. As its findings might have an important bearing on the local industry, Hong Kong exporters were encouraged to make representations through their Canadian agents at the public sittings of the Board in Ottawa. In March 1957 the Tariff Board produced a factual report not unfavourable to Hong Kong exports. A further hearing is scheduled early in 1958.

For two years in succession, France has imposed an extremely small quota on the import of Hong Kong manu- factured flashlights and bulbs. Negotiations to have the quota increased have not so far been successful.

In February the National Association of Shirt, Pajama and Sportswear Manufacturers of the United States showed concern over the increased volume of imports of shirts from Hong Kong, and expressed the fear that Japan was violat- ing her self-imposed export quotas to the United States by using Hong Kong as a diversionary port. It was pointed out that Japanese shirts and blouses were not being exported to the United States through Hong Kong, that the Colony's garment industry was sufficiently developed and competitive in price not to have to rely on re-exports from Japan, and that exports from Hong Kong were unlikely to constitute a threat to manufacturers in the United States.

The foregoing paragraphs outline activities in the field