7. Against such a history and these extremely low growth rates,

I need no tell you that it is the Hong Kong industry's firm belief

-

tha any difficulties which the UK industry may have experienced

and may be undergoing cannot be attributed to Hong Kong. And in

this respect we have noted recently the increasingly successful

performance of major UK sextiles firms at a time when our own

exports to this country have been in sharp decline. In spite of

this, however, as far as we are aware it is the UK Government's

stated policy in Parliament to seek modifications to the MFA which

if adopted would have serious consequences damaging to Hong Kong's

Our concern became even greater when we learnt that

some of these policies had gained wide support within the EEC and

might in fact be adopted to Hong Kong's greater detriment.

interests.

2.

I need not go into detailed arguments of why we think policies

such as "globalisation" will not help in the UK industry. I need

only briefly say that if such global quotes are applied only to

low-cost suppliers, the UK industry will not obtain the protection

that it is seeking, because about 60% by value of the UK's total

imports of textiles and clothing come from other members of the EEC,

the EFTA countries and other developed countries and about 40% by

value of the UK's total clothing imports come from these developed

countries.

3%

9.

I would only

We shall not, and indeed we are not in a position to, question

the UK industry's need for protection or increased protection.

This is entirely a matter for the UK Government.

wish to note that in the first quarter of 1977, British exporta

of textiles and clothing as a whole increased in value by 47%

while exports of clothing alone increased in value by 612.

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