CONFIDENTIAL
FRAMEWORK. PRACTICALLY EVERYONE IS AGREED THAT THE MFA
ULD BE EXTENDED. THE ONLY DISAGREEMENTS THOUGH THEY
ARE OF COURSE MAJOR DISAGREEMENTS ARE ON THE TERMS..
WE AND MANY OTHERS - WILL RESIST ANY CHANGES THAT WOULD
HAVE A MORE RESTRICTIVE EFFECT AND PERSONALLY I CANNOT SEE
AGREEMENT BEING REACHED ON ALL THE MORE RESTRICTIVE PROPOSALS
THAT THE EEC HAS INDICATED THAT IT MAY SEEK.
SO WE ARE GOING TO HAVE TO LIVE WITH RESTRICTIONS ON OUR TEXTILE EXPORTS FOR SOME YEARS YET AND WE ARE GOING TO HAVE
TO LIVE PROBABLY FOR SOME MONTHS WITH UNCERTAINTY ABOUT WHAT
THE TERMS OF THOSE RESTRICTIONS WILL BE FOR NEXT YEAR AND
THE YEARS AFTER THAT BUT I BELIEVE THAT THE MOST LIKELY OUT-
COME WILL BE SOMETHING THAT THE TEXTILE AND CLOTHING INDUSTRY
CAN LIVE WITH.
ON THE OTHER HAND, IF I AM WRONG ABOUT THIS, AND IF ALL THE RESTRICTIONS THAT SOME PARTICIPATING COUNTRIES WOULD LIKE TO SEE CAME INTO EFFECT THEY COULD HAVE A SERIOUS EFFECT ON THE GROWTH POTENTIAL OF OUR INDUSTRY, WITH ALL THAT THAT WOULD ENTAIL IN EFFECTS ON OUR TOTAL ECONOMIC GROWTH AND ON THE
FURTHER INCREASE IN PROSPERITY THAT THE PEOPLE OF HONG KONG
HAVE EARNED BY THEIR EFFICIENCY, RESOURCEFULNESS AND PLAIN HARD WORK, AND, IF THE MFA WERE TO GO THIS WAY, IT WOULD CREATE A VERY UNHEALTHY PRECEDENT FOR OTHER SECTORS OF TRADE. THIS COULD SET THE WORLD ON A DOWNWARD SLIDE INTO WIDESPREAD
PROTECTIONISM.
1 CAN THEREFORE ASSURE THIS COUNCIL AND INDEED EVERYONE IN
HONG KONG THAT THE GOVERNMENT WILL CONTINUE ITS EFFORST TO
PERSUADE THOSE OF OUR TRADING PARTNERS WHO ARE DOUBTFUL ABOUT
IT THAT THE MFA AS IT EXISTS NOW ALREADY PROVIDES FOR AS MUCH
RESTRICTION ON LEGITMATE TRADE AS WE CAN REASONABLY BE EXPECTED
-5-- CONFIDENTIAL
/TO ACCEPT,