Registry

No.

SECURITY CLASSIFICATION

Top Secret,

Secret.

Confidential.

Restricted.

Unclassified.

PRIVACY MARKING

..In Confidence

DRAFT

BRIEF

To:-

VISIT OF HONG KONG TEXTILES DELEGATION

CALL ON MR MURRAY, 3.30 P.M., 21 JUNE

Type 1 +

From

Telephone No. Ext.

Department

DSR11

All Growth ни

Crawll

(

TEXTILES:

LINE TO TAKE

MULTI-FIBRE ARRANGEMENT

1. The Hong Kong textile industry has been worried by

reports of the Community being about to take a protectionist

stance in the Geneva negotiations on the Multi-Fibre

Arrangement, which are now due to begin on 5 July.

There is

no serious cause for alarm. Hong Kong has large and

assured access for her textile imports into the Community

market, not least into the UK. The great bulk of that

access is not likely to be affected.

2.

However, the Hong Kong industry must recognise that the

Community too has a serious problem. Its textile industry,

which in the UK employs 800,000 or more workers, has been

severely hit by low-cost imports in a period of serious

recession. The greatest problem has been that of cumulative

market disruption. The Community market is simply not able

to stand the addition of ever-increasing imports from new

sources of sensitive products into a market already hit by

the large, assured access of the dominant suppliers.

Consequently, some measures will be needed to deal with this problem.)

/3.

Dd 108087 400M S&K 1/77

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