TEXTILE CURD STAYS ON HK
Standard
Hagkag
2/12/71
by
(P. Viswa Nathan, Business Editor
HONGKONG'S cotton textile exports to Britain are to be pegged next year to the present 260 million sq. yards.
London announced this morning that Britain is to continue the quota - despite a two-year-old pro- mise to lift restrictions when a duty is imposed on cotton textiles.
The duty, based on 85 per cent of the normal tariff, comes into effect on January 1.
The decision which closely follows strong appeals by Hongkong textilemen to Whitehall to stand by its 1969 promises, have sent a wave of confusion through the textile industry
here,
Some industrial sources claim that the 100 ve will Cause serious damage to the Colony's textile industry which is already under pressure in the US and Canada.
They say that since Britain had promised to lift the quota by the end of this year, many textile producers have received birge orders from British buyers and have toned their factories to meet this demand,
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The change of London, they say, will bring them heavy losses.
But others say the quota would he beneficial to Hong- kong on a long-term basis.
They say that under the quota, Hongkong gets ап assured market for 200 million sq. yards of cotton textiles while the removal of quota would place Hongkong in unhealthy competition with low wage nations like India, Pakistan, and South Korea.
An assured export volume, they argue, would also help Hongkong to negotiate for a similar share when Britain joins the Common Market,
Meanwhile, Britain's acting Trade Commissioner in Hong- kong, D.C. Rounthwaite, said the rapid run-down of the British textile industry has been a major factor in the present decision,
A Hongkong delegation headed by financial secretary C.P. Haddon-Cave, who held two-day talks with British officials in London is now on its way home.
But R Government announcement said this morning that new talks will start January.
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