Mr. Nahmer asked whether we would prefer further
discussions through our Embassy in Washington rather than
through the US Consul in Hong Kong. I replied that both
channels could be used depending on the particular point
to be raised.
Mr. Blackman (US Department of Labour) mentioned
legislation which had been introduced last year which would
have involved an amendment to fair labour standards to the
effect that goods produced under sub-standard conditions
could be denied access to the US. It had been made clear
that the sponsors were thinking of lower cost/wage countries.
This Bill had been held back by some Congressman but illustrated
the pressures at work. In relative terms the textiles and
apparel industry had not kept pace with the rest of the
economy as regards employment. As regards investment the
mill industry had had new investment but there had been
the
no significant productivitychanges on/apparel side which
consisted of a wide range of operators. He stressed also
the problem of Negro labour.
Mr. Stans gave a brief restatement of the problem and
said that Hong Kong might win the debate but lose the
argument.
This was not intended as a threat and he hoped
that Hong Kong would give full consideration to what had been
said and help to find a solution.
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/ Mr.