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have the strong support of the clothing industry in other developed countries, even though in most cases the industry is protected by a higher tariff than we are proposing for Hong Kong and other Commonwealth countries. The pressure on us not to oppose Mr. Stans may therefore be expected to increase.
11.
The U.X. also has an essential interest in the welfare of Hong Kong. The Hong Kong economy depends on exports. The Hong Kong garment industry has built up a commanding position in the market for low-priced textiles in the United Kingdom, the United States, Germany and Scandinavia. Iler example is now being followed by other Chinese speaking countries such as Korca, Taiwan and Singapore, some of whom are producing their own man-made fibres. The policy of the Hong Kong Government is strongly influenced by Jardine Mathieson and a very few, very large Chinese family-owned concernes, of when jo interested in profitless spesserfly. Their interest is in maintaining profit margins even if this means a loss of trade. U.K. interest is in the welfare of the people of ilong Kong and it is consistent with this interest that Hong Kong should be obliged to accept a smaller share of a much larger trading cake than that she should have a large (and perhaps much more profitable) share of a small one.
12.
L
wheel
The
To sum up; the objectives of United Kingdom commercial policy in the textile field should be to avoid recourse by the U.K. to quantitive restrictions to limit imports from the developing countries and to promote conditions which will facilitate the removal of restrictions on imports from Japan. This can be best accomplished by :-
a)
opposing any extension of the C.T.A.
to non-cotton textiles;
b)
supporting any proposal for the gradual dismantlement of restrictions on imports of cotton textiles;
/c)