CONFIDENTIAL
OUTWARD TELEGRAM
FROM THE COMMONWEALTH OFFICE (The Secretary of State)
TO HONG KONG (Sir D. Trench)
Cypher
Sent 15 June 1967. 04352
CONFIDENTIAL No.1216
35
Following telegram of 14 June from The Hague to
Foreign Office No.252 addressed to Hong Kong No.2 repeated for information to Brussels and Board of Trade.
Begins.
Following from Porter in Amsterdam.
Following U.K. statement Netherlands delegation asked reason for large increase in Hong Kong production of yarns from man-made fibres in 1966. Knowing Dutch concern with imports of synthetic shirts and having regard to Article 6(B) implica- tions I was wary of an off the cuff reply. O'Brien on our behalf declined to reply immediately. I have drafted following reply which has Woo's approval, and which I hope will be given privately to Dutch delegation to avoid supplementary questions and further discussion on this subject.
"The increase does not (repeat not) result in
Hong Kong producing an exceptionally large proportion of yarns of man-made fibres as compared to cotton. Hong Kong Spinners were comparatively late in this field but in 1966 converted machinery enabling them to produce both cellulosic and non-cellulosic yarns in much larger quantities than before. Although this increase was made over a shorter period than is often the case the result is that Hong Kong manufacturers are simply catching up with trend of production in many other major textile manufacturing countries. The yarns of man-made fibres now being produced in Hong Kong are to a fairly large extent used in the weaving of fabrics which replace similar fabrics previously imported. These fabrics are mostly blends which are becoming increasingly popular particularly in those countries in which permanent press is now of considerable importance such as U.S.A. and Australia."
Last night at reception by American delegation I spoke to Van Den Berg of Belgian Ministry of Economic Affairs.
With a little prompting he spoke unusually freely. He hinted very strongly that Belgians are being forced by Dutch to agree to unilateral action to restrain imports of synthetic textile products. He himself appears to be strongly opposed to taking such aftion which would be contrary to G.A.T.T. I stressed to Van Den Berg that Hong Kong Government was always willing to consult on trading problems but in my view would react strongly to unilateral imposition of restrictions contrary to G.A.T.T. He took this point but I am sure you can expect this subject to be raised strongly in the near future, most likely during forthcoming negotiations.
LIN B6/2
Ends.
36
REF.
CONFIDENTIAL
INTERNATIONAL