FO371-46258 — Page 64

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(a) Textiles

Cotton

r

4c

58

It will be some time before the U.K., can compete in cotton goods in the Far East and, even when the industry has been over- hauled, its prices may not admit of extensive development. But we had a significant interest in some of the Far Eastern markets before the war, particularly in specialities, and we clearly want to give the U. K. industry the maximum scope for expansion here. If Japan did not become a major exporter again, mamufacture in Hong Kong might not hit the U.K. hard: if she did, it would be a different story.

Silk

لے

It seems unlikely that the U.K. would be able to compete successfully in real silk goods in Far East markets (in rayon there is a much more hopeful prospect).

(b) Rubber Goods

On some of these at least (e.g. golf and tennis balls, hot water bottles and teats) the U.K. should be able to cater adequately for the Far Eastern markets in about 2 years' time.

(c) Electric torches

There is ample capacity in the U.K. for the manufacture of all types of torch cases and there should be no difficulty in meeting all export requirements. But manufacture is not complicated and Hong Kong might be able to produce torches of high enough quality to satisfy local demand.

(a) Vacuum Flasks

Production of vacuum flasks in Hong Kong would not embarrass the U.K. We used to import from the Far East but shall not need to do so in future in fact shall have a substantial exportable surplus, but there will still be room for Hong Kong production.

/(e)

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