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نذ
CONFIDENTIAL
ANNEX
INTERNATIONAL TRADE IN TEXTILES:
HONG KONG INTERESTS AS EXPLAINED BY THE HONG
KONG AUTHORITIES
In the field of trade there is no question of greater
importance to Hong Kong than the future international
regulation of trade in textiles. Of total domestic exports worth £577 million in 1968, exports of textiles (including garments) were worth nearly £277 million or 48%. Any drastic
curtailment of the textile trade would thus have disastrous
economic, social and therefore political effects in the Colony.
The risks are high if the United Kingdom 'were to pursue an
international textile policy which might have these effects in
Hong Kong.
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The UK's interests and policies are primarily those of an
importing country, whereas the position of Hong Kong is entirely
that of an exporting country. It is the view of the Hong Kong Government that for this reason the policy proposals in PC(69)
18 do not adequately reflect Hong Kong's interests and could
be damaging to the Colony's trade'.
3. The United Kingdom interests are seen to lie in securing international agreement to abolish quantitative restrictions on
trade in textiles except in certain strictly defined situations
and to rely on the tariff for the protection of its domestic
industry. The objectives outlined in the paper are therefore: (1) The temporary · extension of the Long Term Arrangement an
Cotton Textiles (L.T.A.) in a move liberal form, in the
hope that international agreement can be mobilised to
dispense with it altogether;
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