The Rt Hon Sir Alec Douglas-Home, KT IP House of Commons

SW1

President

Original of Mr Smith's letter and enclosure

With her latter of 11 February your

Secretary forwarded for my comments the

enclosed letter to you from Mr Alan Smith

of Joseph Dawson (Holdings) Ltd Kinross.

I appreciate and sympathise with your

constituent's difficulty in meeting

competition from Hong Kong. However, as you

are aware, the imposition of a protective

tariff or any other restrictions on imports

of woollen knitwear, or indeed any other

products, from Hong Kong would be inconsistent

with the declared policy of successive

Governments. This principle was reiterated

last summer when Anthony Crosland, in

announcing our intention to replace quots

controls on cotton textiles by a tariff on

imports from Commonwealth countries, made it

olear that our decision had been taken in

response to a situation which has long been

recognised internationally as exceptional and

did not create a precedent for further

departures from our traditional policy.

I am sure that you agree that it is in

our wider interest as a major exporting

country to work towards the removal of

restrictions on international trade rather

than add to them. Furthermore, it is

especially important that we should avoid

placing obstacles in the way of exports of the developing countries, and particularly those [of our Colonial territories such as Hong Kong,

for which

where we have a special responsibility.

In conclusion may I just say, without

/going

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