Registry

No.

SECURITY CLASSIFICATION

Top Secret.

Secret.

Confidential.

CONFIDENTIAL AND PERSONAL

DRAFT

LETTER

To:-

HE Sir M Maclehose

Governor

HONG KONG

1. cc under

DSRIT

my comp/3 to T. Duffy HKD (3 2. Enter MFA

Reneg

Type 1 +

From # Cortazzi H. Aray Telephone No, Ext.

D. Murray

Restricted.

Unclassified.

PRIVACY MARKING

.............................................. In Confidence

diseases In fund & I had with him over luncheon.

Department

THE FUTURE OF THE MULTIFIBRE ARRANGEMENTS (MFA)

1. I am writing in reply to your telegram no. 131 of

4 February on this subject and in the light of the useful talks which Whitehall officials had with David Jordan on

8 February I think it is important for me to set out the

way in which opinion is forming both within Whitehall and

in the Community.

2. I think the Foreign and Commonwealth Office is fully

importance

aware of the matters which textile production holds in

the economy of Hong Kong and the fact that disruption of that production is likely to have a serious effect on the

econom-

fulfilment of Hong Kong's social programmes as wèll as

on business confidence in general. We are ensuring that

This is, indeed,

christ

these facts are fully understood within Whitehall.

En Comm

I am

sure that you are also aware of the serious difficulties

which face the Community's textile industry and especially

that of the UK. Unemployment levels in the UK textile

ave

E

industry were extremely high and there was little hope of

reducing them in the immediate future. This is a serious

and political,

rored of Clied

social problem and in the short or medium term it will not factis veel it viat

A

be possible to follow through the standard macro-economic

arguments about developed countries upgrading their

technology to accommodate exports from developing countries.

/It

138649 Dd.107857 500M 2/76 MFP

CONFIDENTIAL AND PERSONAL

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