This is precisely why we in the British Government were
recently obliged to modify our stand at regrettably short notice
about entry of cotton textiles to Britain. Our predecessors in
office had decided that quotas on cotton textiles should be
abolished and that our industry should be protected, in so far as
protection was desirable and necessary, solely by a tariff barrier.
We inherited that decision, and confirmed it, hoping that it would
see us through till our entry into the EEC on 1 January 1973
required us to move the Community's own system. But late last
year it became apparent that some of our suppliers and let me
say at once that Hong Kong was not one of those closely concerned
were proposing to flood us with goods in such quantities that orderly marketing would have become impossible. I do not exaggerate when I say that orders which were triple the previous quota allocation of certain suppliers had been laid.
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We had no alternative but to put up the shutters. While certain hardship has, I understand, been caused to Hong Kong's legitimate trade we feel that you will be less affected than many others. Your quota accounts for 2/5 of our total imports of
cotton textiles. Your quota is much the largest of all those allocated. Those who had planned to switch orders from you to
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your competitors on price gråte may find that because of the quotas only you can supply. To this extent our switch may even be of some advantage to you. Do not think that in our talks with your textile delegation, which I was able to welcome in London, we were being hard hearted. We offered you a reasonable bargain which we hoped would meet your needs. It was unacceptable to you. Since then we have both looked again at the situation and I am happy to say that agreement ad referendum to our two Governments seems
likely to be reached on a new offer we have made to you. As a
dependency you are a first charge on our bounty. We recognise this and have tried our best to meet your requirements, but you will
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