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11.
third countries are subject to quantitative
limits;
moreover even in general conditions
of full employment the U.K, textile industry
can be expected in the foreseeable future to
have some surplus capacity so that increased
domestic output could reasonably rapidly be
substituted for some part of our imports from
(111)
Hong Kong (the remainder - subject to (iii)
replaced by
below would no doubt be/imports from other
"high cost" countries);
(iii) while the loss of imports of Hong Kong clothing (111)
and textiles would generate pressure for
increased access to our market from other
controlled low cost suppliers, there would be
countervailing pressures from domestic
producers, and in any case the scale of "low
cost" imports is a matter within H.M,Q's control,
so that it is reasonable to assume that
increased supplies from low cost producers
would be permitted only in return for counter-
vailing commercial (or other economic)
advantages,
The most reasonable broad conclusion would seem to and on the assumptions stated in paragraph 3 be that as compared with 1966,/the net balance of.
should not be payments affects of the loss of Hong Kong/wouldxbxIKKU ŽA too difficult to digest. /12xxotxxbyliyibis. The same is probably true of income
effects, even taking account of some increase in prices
arising from the loss of supplies of low cost Hong Kong
manufactures.
II. Effects on the U.K economy arising from
12.
consequential" hanges or in economic relations with China
In this section, an attempt is made to assess firstly
how far there would be "natural" changes in the level of
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