ENG-1960 — Page 105

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INDUSTRY AND TRADE

Zealand and South Africa, are all in Western Europe. At the time of writing it seems that the ban will not apply to triangular deals of the type mentioned in the last paragraph, but there have been conflicting reports on its effect on purchases in Hong Kong on behalf of Post Exchanges catering for the American armed forces overseas. The decision will affect certain other industries and the Colony's entrepôt trade.

The effect on Hong Kong's exports of the two trade blocs now in existence in Europe-the European Economic Community and the European Free Trade Association-has been closely watched. Elimination of the internal tariffs of these organizations has not yet proceeded so far as to affect the Colony's trade to any signi- ficant extent. Except to France, exports to Hong Kong's main trading partners in both groups showed a marked improvement. Further negotiations were held with the French authorities and attended by a representative from Hong Kong in an attempt to persuade the French to discontinue their overt discriminatory restrictions against Hong Kong, but little progress was achieved. Indeed, France has since tended to underline its discrimination against the Colony by increasing the range of Hong Kong com- modities denied the benefit of liberalization.

On the other side of the picture, it was gratifying to learn that Germany had removed quantitative restrictions on imports of rubber shoes from Hong Kong and that the Benelux countries had taken similar action in respect of certain types of gloves.

Outside Europe and North America, Hong Kong's exports have experienced fluctuating fortunes. The expected rise in exports to Australia, following the relaxation of Australian import controls, did not fully come about, although some improvement was noted. The year was marked by a series of appeals to the Australian Tariff Board by manufacturers seeking protection, and in several instances (notably in footwear, the trade in which has since been very much reduced) the tariffs have been increased without any adequate compensation. Items of interest to Hong Kong under consideration by the board, on which decisions had not been announced by the end of the year, include travel goods, certain cotton piecegoods, toys and dolls, artificial flowers, watchcases, umbrellas, canvas and duck materials and ginger.

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