South China Morning Post
6/12/1 -U.K. textile move-chocks H.K. industry
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Textiles circles expressed shock yesterday on learning from several sources, including Singapore and Britain, that the British Government will re- impose quotas on Hongkong cotton woven textile exports from January 1,
Six associations representing a wide section of the textile industry said in a joint statement last night that they most upset and annoyed by the arbitrary decision of the United Kingdom Government.
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They strongly oppose such a decision to introduce quotas "on top of the Commonwealth preference tariff" as from next year.
The statement came only a
day after the Financial Secretary, Mr C. P. Haddon- Cave, and the Deputy Director of Commerce and Industry, Mr E. P. Ho, left for talks with officials in Whitehall "on the future of Hongkong's exports of woven cotton textiles to the UK." (See Business 1.)
Associations
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The joint statement made by the chairmen of the associations.
They were Mr Francis Y. H. Tien of the Hongkong Garment Manufacturers Association, Mr Lam Kun-shing of the Federation of Hongkong Garment Manufacturers, Mr C. K. Chow of the Federation of Hongkong Cotton Weavers, Mr Cheong Ying-chan of the Hongkong Weaving Mills Association, Mr Henry Chia of the Hongkong Made-Up Goods Manufacturers Association and Mr Toa Shai-mee of the Hongkong Printers and Dyers Association.
The textiles industry, the statement said, should like to remind the British Government of her decision in 1969 to replace the present quota system by levying a Commonwealth preference tariff averaging at 85 per cent of the general tariff, in respect of Commonwealth cotton woven textile imports..........
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The statement went ont "This step was taken us A
means to assist the hoped for rationalisation of the British textiles industry, but to the detriment of the Hongkong textiles industry. At that time, the President of the Board of Trade told the British Parliament that. 'From that date (i.e. January 1, 1972) the British Government would consider the use of quotas only on particular products under Cotton the Long Term Arrangement of the GATT, and only if total imports of cotton textiles rose significantly above the present level and caused disruption to the market in those particular products...'
"To decide to introduce quotas again now on Hongkong exports is therefore completely contrary to what the British Government herself said before. There is no factual case for the British Government to do so. The decision illustrates the absence of a sense of moral obligation of the British Government towards Hongkong people, and indeed reflects bad faith on her part."
Demand
The statement recalled that since 1959 when Britain secured Hongkong's agreement to restrict textile exports to Britain, the demand for curbing our textile exports grew in increasing frequency.
"There is a danger that the re- imposition of textile quotas by the British Government, despite its earlier decision to replace it by tariff, would spur further trade protectionism prevailing in developed countries. Trade protectionism will ultimately benefit none, including Britain herself, the originator of our textile restrictions," the statement said.
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