(134392) Dd. 737115 750m 4/70 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:-

Type 1 +

From

SLOMAN Telephone No. & Ext.

Department

Commodities

30

Kansistör radio's

1 4%%

Hong Kong Exports

Textiles are Hong Kong's major industry, accounting

in 1969 for 47% of all Hong Kong exports. The

regulation of international trade in textiles is a

matter, therefore, of great importance to Hong Kong.

The other main items exported by Hong Kong are electrical goods 10%, plastic toys 7%, wigs 6% and

artificial flowers 3%.'

Cotton Textiles

2. Towards the end of the '50s imports of cotton

textiles from Hong Kong (which enter the

United Kingdom free of duty) began to cause serious

problems for our domestic industry. To deal with the

situation, inter-industry agreements were drawn up

providing for the development of Hong Kong's trade with

the United Kingdom in a reasonable and orderly manner,

having regard to the need to avoid disruptive effects

in the United Kingdom market and on individual lines of

production in both the United Kingdom and Hong Kong.

These arrangements (the "Lancashire Agreement") were

later embodied in an inter-governmental agreement

known as the "Heads of Agreement". Thus, since 1959

imports from Hong Kong of woven cotton textiles

(including cotton clothing) have been subject to

quantitative restrictions in the United Kingdom market

and since then imports from all other developing

countries have been brought under control.

CONFIDENTIAL

Besides

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