[
Ба
6b
Бе
NON-COTTON TEXTILES (MAN-MADE FIBRES AND WOOL)
inconserbet with the reites of the titty
Apart from the non-two restrictions which France
maintains on Hong Kong's non-cotton textiles, both the UK and
Ewly
the EEC has tariff protection one against man-made fibre
s/tariff
goods from Hong Kong. On wool goods, Hong Kong faces a
tariff in the EEC, but enjoys duty-free entry into the UK.
7
All major developed countries other than the United States
restrict imports of some non-cotton textiles from Japan. As
explained in brief No
the United States has for some time
*
been seeking to restrict imports of non-cotton goods from
Japan, Hong Kong, Korea and Taiwan either by means of
voluntary restraint arrangements, or by quotas imposed under the
Trade Bill now before Congress. The UK and EEC on the other
hand are working towards the liberalisation of Japanese non-
cotton textiles, subject to reciprocal concessions on the
part of the Japanese.
The Japanese have so far failed to reach an accommodation with
the USA, largely because the terms offered by the Americans
have been unacceptable to the Japanese industry. A further
round of talks is, however, now taking place, which may end in
agreement. Hong Kong's attitude is that she would prefer to
negotiate a voluntary agreement rather than have quotas imposed
on her under the Trade Bill. We have however taken the line
that she must not make overtures to the Americans until we see
whether the Japanese have held firm or yielded to US pressure.
Quite apart from the damage to liberal trading policies which
would result from the implementation of the Trade Bill and/or
the existence of a network of voluntary restraint arrangements
for non-cottons, there is a risk that if the USA restrict access
to its market and particularly if this involves a cut back
in the present level of trade Asiatic
vid
substantial quantities of Asian
Adriatic non-cotton textiles would be diverted to Europe an
markets. The UK has therefore joined with the Six in suggesting