(118281) Dd. 391599 1,500M 2/69 Hw.

NOTHING TO BE WRITTEN IN THIS MARGIN

Registry No.

SECURITY CLASSIFICATION

Top Secret.

Secret.

Confidential.

Restricted. Unclassified.

PRIVACY MARKING

In Confidence

DRAFT Brief

To:-

Bras for hood Shephead Type 1 +

Марым

From

Telephone No. & Ext.

Department

Nr. Stewart-

This shoned be

cleared as soon as possible with

Ar. Whitehead in In light of his experience

Hong Kong

2075

Report of the Textile Council

The Textile Council's study of the productivity

and efficiency of the Lancashire textile industry was

published at the end of March and has caused consider-

able comment in the press in the UK and in Hong Kong.

In Hong Kong there is a tendency to associate the Board

of Trade closely with the Textile Council's recommenda-

tions. But in fact although Board of Trade officials

took part in the work of the Council's Executive

Committee and other Committees concerned with studying

the industry they were there only to act as assessors.

They were not concerned with the conclusions and recom-

mendations of the report and there is thus no question

of HMG being committed in any way to accepting those

conclusions and recommendations.

2. The Textile Council recommended inter alia the

imposition of a tariff of 15% on cotton textiles from

Commonwealth sources. This is the most important

recommendation from the point of view of Hong Kong

There

and the feeling is that insufficient consideration has

been given to the many important potential consequences

of that recommendation.

3.

The meritable

Jeix/ressions of

and alarm

At this stage the answer to criticism is that it

is the Textile Council and not the Government which

This

carries responsibility for its recommendation.

The

Board of Trade will be reviewing the findings of the

1

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