WHT Delegation
Please quote our Ref.: G10/PR/VS
LLOYDS BANK CHAMBERS, HUSTLERGATE, BRADFORD BD1 IPE. TEL: (0274) 21206
CHAIRMAN: C. M. D. ROBERTS. VICE-CHAIRMEN: T. W. HIBBERT, T.D., F.C.A.,L.T.J.
C. RUSSELL SMITH.
HON. TREASURER: R. H. SLAUGHTER, M.C., M.A. DIRECTOR: P. RICHARDSON, J.P., LL.B., F.C.I.S. SECRETARY: M. A. SMITH, A.C.I.S., A.M.B.I.M.
20th June 1977.
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we
already
Dear Peter,
There has recently come into our possession a copy of a document put out by the Hong Kong government office on 10th May setting out their view of the MFA renegotiation; I presume you will already have seen this.
This is the first indication I have seen of the attitude of Hong Kong and I must confess I was hoping they would be less positive in their opposition to the EEC view, in the belief that sooner or later they will find them- selves in a position somewhat similar to our own (ie. under threat from lower cost producers).
There are, of course, one or two points which strike me
about the document itself as follows:
a)
b)
WORSTED SPINNERS' FEDERATION LIMITED
BRITISH WOOL CONFEDERATION
all
In paragraph 5(b) the HK government says that the globalisation concept would not apply to "signatories of free trade agreements". This to me is self-evident and is surely what free trade agreements are all about; such agreements do is to remove duties and tariffs from such trade. The large volume of products bought from our EEC and EFTA partners are purchased because of their inherent quality, design, consumer appeal, etc. and certainly not because of their price which in general are higher than our own domestic prices. For this reason they are not generally price disruptive as are imports of low cost countries.
On the comment in paragraph 5(c) that importing countries could play off suppliers against each other, I have two comments:
i)
ii)
The HK government must realise that there is a physical limit to the amount the Community is prepared to take, bearing in mind the massive investment in both capital and manpower which is represented by its textile and clothing industries. In any event the EEC's record in taking large volumes from LDCs is as good as if not better than other developed countries and I believe well exceeds that of the USA and the USSR.
The HK government must surely acknowledge that Hong Kong, Taiwan and South Korea have creamed off the market in low cost textiles and the EEC globalisation proposals would have the effect of reserving some share of the limited available market for those countries whose needs are even greater than theirs.
/Continued
WOOLLEN AND WORSTED TRADES' FEDERATION WEST OF ENGLAND WOOL TEXTILE EMPLOYERS' ASSOCIATION
PRESSED FELT MANUFACTURERS' ASSOCIATION
WOOLLEN YARN SPINNERS' FEDERATION DYERS' AND FINISHERS' ASSOCIATION NATIONAL ASSOCIATION OF SCOTTISH WOOLLEN MANUFACTURERS