OF PR
SUNC
From the President
BOARD OF TRADE
1 VICTORIA STREET
LONDON S.W.1
3rd March, 1970.
Dear Sir Alec.
In her letter of 11th February (written to Goronwy Roberts' Secretary) your Secretary invited comments on the enclosed letter from Mr. Alan Smith of Joseph Dawson (Holdings) Ltd., Kinross.
I appreciate your constituent's difficulty in meeting import competition from Hong Kong. However, as you are aware, the imposition of any new or additional protective duties or other restrictions on imports from this source would be inconsistent with the declared policy of successive Governments. The principle was reaffirmed last summer in connection with our decision to replace quota controls on cotton textiles by a tariff on imports from Commonwealth countries. In announcing this Anthony Crosland made it clear that the cotton textile case was an exceptional one and the decision did not create a precedent for further departures from our traditional policy.
Our wider interest as a major exporting country requires us to work towards the removal of restrictions on international trade rather than add to them and it is especially important to avoid placing obstacles in the way of exports of the developing countries, particularly those of our Colonial territories where we have a special responsibility.
Perhaps I should add that our friends in Hong Kong would not accept the implications of the emotional advertisement in the Washington Post. They would argue that wages of garment workers in Hong Kong compare favourably with those in other Asian countries, except Japan, and that in the last ten years the levels have more than doubled. At the same time they would point to the substantial improvemats in other working conditions in the industry. However, so long as the disparity with rates in the developed countries persists, it is inevitable that sources such as Hong Kong will have a price advantage in made-ups.
****
Your fincerel
Renmarien
The Rt. Hon. Sir Alec Douglas-Home, K.T., M.P.
1