- 4.

1976 in the value of British exports to textiles and clothing as

a whole, and considering the high proportion of British production

which is exported (we do not have precise production figures but.

we believe that in 1976 the UK's exports of textiles and clothing

were equivalent to 2% of British consumption and 84% of British

imports), it seems to us that the UK industry is doing quite well.

In addition to this there are also, as I have mentioned, the recent

reports in the UK press of increased profits for some of the UK's

largest textiles corporations - and I refer here to the recent

financial statements of Courtaulds, ICI. and Coats Patons. These

are, I understand, among those sectors of the UK industry which are

making the most vocal demands for incr.ased protection. I am sure

I need not point out to you the inequities of the situation expecially

when seen from the point of view of Hong Kong manufacturers who will

be at the receiving end of any restrictive policies on textile

imports which may be pursued by the EEC both multilaterally and

bilaterally.

10.

I will now turn briefly to the Hong Kong industry. It is

as you well know very vulnerable to external forces. Our overall

exports of textiles and clothing as a whole increared substantially

in 1976 and you will probably say that we are in a healthy state.

But we are not. I will not quote figures but, if you look at our

industry sector by sector, you will find that the spinning and

weaving sectors did not do as well as the garment sector even in

1976 and were only able to recover from the recession in 1974 and

1975 because of the demand generated by the boom in our garment

exports in 1976. Going back to the overall picture, in the first

four months of 1977, in spite of incronses in value, our exports

to the UK of restrained textiles and clothing items dropped by

5

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