China Mail
4-4-73
Don't get too frightened...
Home truth
on the EEC
and textiles
BRIAN HILL
talks to
THE
EXECUTIVES
SOMETIMES it takes an outsider to tell us a few home truths. Take Britain's entry into the Common Market, for instance.
Only two days ago we had Mr P. G. Williams, Chairman of the Hongkong General Chamber of Commerce, voicing concern that Britain may not adequately represent Hongkong textiles in the EEC.
He echoed what many Hongkong textile exporters have been saying when he cast doubt on Britain's ability to look after Hongkong's interests.
But is it possible that the exporters have been repeating this opinion and it is, after all, just an opinion for so long that they've accepted it as fact?
Jan Lewando, who left Hongkong last night on his way home to London after attending the British Industrial Trade Exhibition in Peking. appears to think they have. -
Mr Lewando, a member of the British Overseas Trade Board and President of the British Textile Confederation, said of Mr Williams: "I do not think he is fully informed.
"There is a tendency in some quarters." Mr Lewando continued, "to claim Britain had something to do with the imposition of quotas on Hongkong goods, particularly textiles.
"This is partially true. but it is only half the story.
"The move is designed to try to secure a common textile industry in Europe with the French and Italian governments taking part.
Quality goods
"We hope we shall then get them to open up the door to your products.
"We are seeking to bring about as quickly as possible a free exchange of textiles. ard that means liberal import policies will also be maintained by West Germany and Holland.
This is just what your government wants.
3
Mr Lewando paused to 'et the reasoning sink in.
He seemed surprised that anyone could even suggest Britain would be unable to adequately represent Hongkong - either in the EEC or in the UK itself.
Then he continued: "Penetration in Britain by Hongkong textiles is extremely high- and the quotas are on the whole quite generous. "We are putting them at the level of the last 12 months which was a record level”
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Mr Lewando paused again - rather like an actor measuring his words to produce the right dramatic effect.
We were waiting for the punchline. and he delivered it.
"A lot of your textiles are not empetithe in the world market, and that includes the EEC" he said.
"And there is a definde nepafcenital machinery from Homelong to
Indi masia and
Mauritius, where labour cc as are lower.
"I think the answer to the woblem is the same as what we did in the L'K upgrade productor introduce quality goods, and leave commodity products to others.
"It is difficult to compete against low-priced textiles produced in places where wages are a fracuon of those in Hongkong."
The diagnosis sounded authoritative, as friends of Mr Lewando would have expected. But who is the man? And what are his qualifications for putting the august chamber of commerce in its place?
Aviation equipment
Jan Alfred Lewando was born in 1909 and educated at Manchester Grammar School and later at Manchester University.
He joined the British firm of Marks and Spencer Ltd ("Marks and Sparks") in 1929 and became a director in 1954. He retired from the company in June 1970 in order to become Chairman of Viyella International Ltd - which in 1970 merged with Carrington and Dewhurst Ltd to form Carrington Viyella Ltd.
Mr Lewando is now Carrington Viyella's chairman.
From 1965-69 he was a member of the Export Council for Europe. and from 1969-71 he was a member of the British National Export Council.
Then in December 1971 he was invited to become a member of the British Overseas Trade Board. And a few weeks later he was appointed president of the newly-formed British Textile Confederation.
His position in the British Overseas Trade Board involves special responsibility for fairs. exhibitions and publicity. Hence the trip to Peking.
Mr Lewando described the Peking exhibition, which ends on April 25, as the most successful ever staged by the UK in China.
He offered a few tips for manufacturers hoping to sell to the Chinese.
"You can forget consumer goods." "Mr Lewando said bluntly. "The success of the exhibition in Peking is linked to the fact that we are showing capital goods - equipment which the Chinese can use to make consumer goods themselves.
"The Chinese were particularly interested in mining excavation machinery, scientific tools, certain types of textile machinery, all types of secondary industry equipment. transportation, printing and packaging machinery and aviation equipment."
Aviation equipment?
-
Yes. Mr Lewando admitted "but this was on a very high government to government level”.
He would not elaborate - but a fair bet would be that Concorde was discussed with the Chinese officials and ministers he met.
As to the outcome of the discussions, we can only wait and see.