distinction between cotton and non cotton will encourage Mr. Stans?
22.
For we believe that the treat from non- cotton textiles has been exaggerated. Both the
British and Hong Kong Governments have told Mr. Stans he was exaggerating. The fact that "voluntary restraint" have proliferated so' little in the last four years also supports this view.
23.
We cannot say that even the U.8.A has a' problem on shirts and sweaters when they have not produced the evidence, the textiles industry is booming and the Tariff Commission said that low cost knitwear inports had probably created their own markets.
24.
Imports of man made fibres into Britain from Hong Kong are still negligible (e.g. nearly all our trousers x are cotton under quota) while imports from Portugal are a speical case brought about by the fact that the U.K. have deprived itself of tariff protection against this low cost supplier.
in formation of
Conceded
25.
We succeds ed Sweden and Norway that they exaggerated the threat, and considered very little restraints. We have seen no evidence that these restraints xxxkiwxxmexdi (or the Candian ones) have increased the pressure on the U.K. market.
26.
It is not our experience that our trading partners (except the U.S.A.) used their stronger position to impose on us wholely unjustifiable restraints over a wide range of products.
27.
It is not for me to comment an U.K. policy and interest but only to ask that Hong Kong policy and interest should also be considered, but I would emphases that in the figures I have seen I see no case for non-cotton restrainst against Hong Kong in the British market.
28.
I would therefore conaloude these
premilimantry by saying that I believe that it would be in accordance w