2
to the USA.
5
You can see from these figures that unfavourable
developments in our two biggest overseas markets have far-
reaching effects on our economy as a whole. At present the
bulk of our textiles and clothing exports to these two markets
are covered by bilateral export restraint agreements concluded
under the Multi-Fibre Arrangement the MFA. These two
agreements as well as the MFA itself are due to expire this
year
—
our bilateral agreement with the USA will expire at
the end of September; our bilateral agreement with the EEC,
and also the MFA itself, at the end of 1977.
6
The whole of Hong Kong's textiles and clothing
industry is seriously concerned about developments in all
three areas but the purpose of our visit here is mainly to
express our concern at the policies which are reportedly being
pursued by the EEC and by the UK Government in respect of the
future of the MFA and, in consequence, the terms of a new
bilateral agreement between Hong Kong and the EEC.
7
As far as the UK is concerned, I am sure you will agree
that the Hong Kong industry has always recognised the difficulties
of its UK counterpart. Indeed since 1959 when our exports of
cotton textiles to the UK were first put under restraint on an
industry to industry basis, Hong Kong has conceded more to the
UK than it has to any other importing country. I need not remind
you that where cotton textiles were concerned, since 1959 the
annual growth rates on restraint limits was only 1% until 1972
when polyester/cotton textiles were also placed under restraint
and the annual growth rate became 2%. When the MFA came into
force in 1974, we were glad to note that one of its basic
objectives was to "achieve the expansion of trade, the reduction
of barriers to such trade and the progressive liberalisation of
.../.