6

our predominant share of the Community market. We think it

is unfair to attack Hong Kong's position or to suggest that

if Hong Kong were restrained more severely, then other

developing countries could benefit at our expense. This

concept of doubly penalising the successful to win political

credit with the less successful seems to us basically dishonest.

We feel that if the objective of the developed countries is

really to assist the less developed among the developing

countries, then the textiles and clothing exports of these

developing countries ought to be allowed to grow, if they can,

in competition with established suppliers. It is not reasonable

to say that they should first be placed under restraint and

then allowed artificially induced growth at the expense of Hong

Kong.

13

What we are seeking is that H.M. Government should

reconsider a textiles policy which in our view will not benefit

UK producers but will in its application cause damage to Hong

Kong's textiles and clothing trade industry and consequently

impede Hong Kong's continued economic progress on which all of

our social, education, and housing programmes depend. We are

conscious of the benefits which Hong Kong and the UK have both

enjoyed through our special relation ship. We are aware that

because of this special relationship, the UK has done a lot to

obtain for Hong Kong the same terms as other developing countries

in the EEC's generalised system of preferences. Although there is

still some way to go before we are on equal footing with other

developing countries, we appreciate what has already been done.

Having observed developments in recent months regarding

the future of the MFA and the possibility which has been mentioned

of Hong Kong being asked to accept much worse terms in a new

14

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